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Euro Zone Crisis

The euro zone crisis was triggered in 2009 when Greece's debts, left by its previous government, reached a record 300 billion euros, leaving the southern European economy with debt levels more than four times higher as a proportion of gross domestic product than the official euro zone cap of 60 per cent of GDP. Since the original problems were uncovered, Greece has been bailed out twice, and lenders have also had to rescue Ireland and Portugal. In the latter half of 2012. Cyprus also required a bailout.

The headquarters of the European Central Bank in Frankfurt, Germany. Photo: Reuters

ECB face an uphill battle to tighten policy

You really wouldn’t want to be in the European Central Bank’s shoes right now. It is stepping through a minefield, tiptoeing between perilous politics, conflicting economic signals and deep divisions about where euro zone monetary policy should be heading.