|Abstract:||The covid-19 pandemic shook the world in 2020. Unsuspectingly, we stepped into the new year and back then todays situation seemed unimaginable. On March 11, 2020, the World Health Organization (WHO) declared covid-19 a global pandemic. We are talking about a new coronavirus called SARS-Cov-2, a severe acute respiratory syndrome transmitted from animals to humans which can potentially cause a serious disease. Euro-area countries have accepted the number of measures to prevent the spread of the disease in order to limit infection. Two of the biggest are self-isolation and cessation of manufacturing and business activities, which has led to a large economic decline in the euro area. The covid-19 pandemic is certainly the biggest shock to the euro area economy since the start of the euro area and since the second world war. The covid-19 pandemic caused irreparable damage with lost lives, and also demobilized euro area economy. The dispersion of the covid-19 pandemic has posed major challenges for the euro area economy in its financial system. In order to help the economy in euro area, the european central bank has introduced a large number of measures since the beginning of the covid-19 pandemic. The covid-19 pandemic has led to a major re-pricing and to repositioning in the world of financial trading. Falling economic growth and increased risk resilience, coupled with high uncertainty about the future development of the covid-19 pandemic, caused extreme volatility in capital and other venture capital markets and strong exchange rate movements. The covid-19 pandemic represents a global macroeconomic shock with uncertain magnitude in duration. In countries most affected by covid-19 pandemic activities in a number of sectors have collapsed, including tourism, transportation, the automotive industry and services. With the decline in demand, the crisis is quickly spreading to other economic areas. The outbreak of the covid-19 pandemic had a significant impact on the economic system, individuals, society and the country as a whole. Countries had to face the financial losses caused by the lack of tourism, trade and other activities. Banks of the euro area are also under great stress, as large-scale insolvencies between companies and the latest wave of bankruptcies are now emerging.
In the introduction of our diploma project, we will present the basic issues, goals, purpose and hypotheses of the work of the diploma project. In the second chapter, we will present basic starting points such as the euro area and its economy, which will also cover the history of the euro area and the European Central Bank. In the third chapter, we will focus on the covid-19 pandemic and find out what the consequences are and will be for the euro area and its economy. In the last, fourth chapter, we will identify the impacts of the covid-19 pandemic on the economy and financial stability of euro area, as well as the measures taken by the ECB.|