Eurozone Meltdown Financial Catastrophe Stress Test


The exit from the Euro spreads by contagion of similar political and economic issues across a number of countries and affects other economies that are typically thought of as being core countries of the Eurozone. These problematic political drivers might still endanger the currency union, although the pure financial market risks now seem to be under control as a powerful rescue architecture has been set up since 2011.

The standard scenario’s impacts are limited to peripheral countries however in the more severe scenario variants, there is a total Eurozone meltdown with severe global effects.

The scenario causes a worldwide recession lasting just over a year (approximately five to six fiscal quarters).