Editorial on the European Crisis

Can the Euro-Zone Resolve their Crisis?

* The euro-zone is all countries part of the European Union, who all adopted the euro as their one single currency.

* The euro crisis of the euro-zone has been a series of negative events affecting the euro-zone

Recently, five large countries which form part of the European Union (EU) have failed to generate the economic growth needed as part of the EU. Greece, Portugal, Ireland, Italy and Spain are unfortunately only a part of countries going through one of the worst inflation conflicts their history has seen since the Great Depression. They are not able to pay back former debts that supplely help them get out of problems, but with inflation, interests and bed planning, the debts kept on piling up more and more. These five countries may be in the worst state of all in the region, badly places the rest of the region with the crisis as a whole.

The euro crisis began around 2009 with a series of negative events upon the 16 members of the EU; the global economy had started to slow. Greece was immediately affected at the start of the crisis and failed to undertake fiscal reforms. With the slowness of economy, tax rises. As a result, Greece’s debts increased to the point where it exceeded their whole economy, and at that point the nation could no longer hide its problem. Greece had help from the EU as well as the European Central Bank (ECB), which caused the markets to rise in other heavily indebted countries of the area which have had similar results to those of Greece.

Unfortunately, this financial crisis is having and is going to continue having long-lasting effects on the euro-zone and global economy. Obviously, there is a present threat to the value of the euro, which was by far the most important project of the EU in order to obtain European integration. The euro now depends on careful management in marketing and banking systems, along with a reformation of the fiscal governance. Solidarity is key...