"Europe must prevent Greece from becoming an out-and-out catastrophe and make sure that the same fiscal 'remedy' is not applied to other weak economies" -- Franziska Brantner
“There are three kinds of people: the have's, the have-not's and the have-not-paid-for-what-they-have's” -- Earl Wilson
Today, the world faces another economic crisis in the Eurozone. This crisis exists because too many people are consuming more than they are producing. In other words, the have not paid for what they have. Admittedly, Euro skeptics had always been apprehensive of a similar situation because of the obvious differences in the economies of all member nations that decided to share a singe currency. It seemed rather imprudent of the Union to bank on the prospect of huge developments within Developing Countries in spite of the economic bubble they were forced to maintain; it was bound to afflict the people involved. However, now that the problem at hand has grown from a simple debt deficit to a prospect of another global recession, the Greeks would only be taking a small hit compared to the dips that now seem unavoidable for both the Euro and the Global Economy. Therefore as disastrous as the implications of this situation can be, it is more important for the world to know if it can be solved and whether the European Union and Global Economy can dodge this particular bullet.
Strictly speaking, the Eurozone Crisis revolves around three main parties – Greece (which can be held responsible for most of it), the European Union (which is being held answerable for starting this domino effect and therefore curbing it) and the rest of the world – the Global Economy (that may be on the brink of a second major recession in just 5 years). Unfortunately for the EU, since Greece is in no position to recover, the burden of getting the world out of this nasty situation, lies on it. It is being forced to choose between its interests (maintaining the financial stability of the Euro) and playing the hero to save the world by taking this particular bullet which may still hit the global economy since Euro is the second largest reserve currency of the world. The urgency of the situation is better explained by George Osborne “ We have got weeks not months for the Eurozone to take action. ”. so even though it is rather unfair, the European Union is being blamed for not finding a quicker solution to the problem. However in order to conclude whether EU has failed to devise a solution for the debt crisis, its limitations applied by its economic policies and the support it receives from the other two parties involved must be analyzed.
The time line of the Eurozone crisis implies that European Union must take an effective measure to stop the monster it let grow. Monetary analysts suggest that it all started with the emergence of the Euro. On 1st January 1999, the dream of several European politicians finally came true, as Euro was declared an official electronic currency...