Taking a Look at the Euro-Zone

The European sovereign debt crisis started in 2008, with the collapse of Iceland's banking system, and spread primarily to Greece, Ireland and Portugal during 2009. The debt crisis led to a crisis of confidence for European

The European Debt Crisis often referred to as the Eurozone Crisis, struck the European Union at the end of 2009.

The European debt crisis was a financial phenomenon that affected multiple countries around the world and the shockwave almost collapse the global market. One of the countries that were greatly impacted by the crisis was Spain. Some of the implications of the event caused unemployment to skyrocket, debating the role of the European Union and the state Catalonia is seeking their independence. Ultimately, the Euro Crisis showed the weakness of the European Union and debate if it would last into the future.

The creation of the single European currency has exacerbated the nature and extent of the Eurozone sovereign debt crisis.

There is an erroneous assumption in the world that the concept of the European Union, the notion of having a shared currency, and borderless pan-European continent is a relatively new idea. However, the idea of a pan-European identity as it is known today through the European Union was established after the end of the Second World War, as the need for a united Western Europe was needed to combat the possible threat of war with the Soviet Union. The policies of the European Union went through a long review through the establishment of multiple pan-European organizations, primarily the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), which provided the backbone of the modern European Union, through a number of treaties that encouraged European cooperation. It is through the combined efforts of the ECSC and the ECC that Churchill’s dream of a united Europe in 1949 eventually culminated in the creation of the European Union (E.U), an organization whose role is to protect the economic interests of aligned nations as outlined by the mandates of the ECSC and ECC.

The European financial crisis has been an economic struggle for quite some time now. Because Europe’s economies are interdependent, when one gets out of balance the others are affected as well. One can argue, that the growing current account imbalances within the Euro area indicates an ongoing process of economic divergence rather than convergence. This is the foundation for why this debt crisis has been so difficult to solve. European officials and the best economist the world has to offer still have no viable solution for the matter at hand. We will look at several different aspects of the debt crisis, such as the

In 2009, The Greek debt crisis began. This crisis is still ongoing today, but there have been many changes that occurred in Greece. This is also known as the Greek Depression. It is part of the ongoing Eurozone crisis, which was generated by the global economic recession which started in October of 2008. It is said to be caused by a combination of a weak Greek economy and an overly high structural deficit and debt to the countries ' government debt and the gross domestic product. Later in 2009, the question/ fear of sovereign debt crisis, which is the failure or refusal of the government to pay back debt in full, developed concerning Greece’s ability to even meet its obligations of paying its debt. This all led to a full blown crisis and risk insurance on credit default swaps, which are pretty much giving out loans to help pay off some of their debts.

The European Union is not perfect. It has its own weaknesses and faults as well. Therefore, now I would like to write a short description about the mistakes of the monetary union. Then I put a question to all of us if the Eurozone, and especially the Euro, need to be reformed after the last years experiences. Finally – at the end of this subsection – I briefly summarize the negative effects of the crisis on the EU as a single currency area.

A single currency offers many advantages, such as eliminating fluctuating exchange rates and exchange costs. Because it is easier for companies to conduct cross-border trade and the economy is more stable, the economy grows and consumers have more choice. A common currency also encourages people to travel and shop in other countries.

“If the Euro fails, then not only the currency fails… Europe will fail, and, with it, the idea of European unity.” Merkel’s words preclude the diminishing consensus within European Union, no matter the attempts to solidify support within Europe. The 2008 Eurozone crisis has lead to distrust and unease in Europe. The Treaty of Lisbon (2009) was the re-organisation of the European Union policy-making structure after the pillar formation of the Treaty of Maastricht (1993). The Treaty of Lisbon, no matter how triumphantly proclaimed to the people, has given increasing control to the European Parliament and other intergovernmental bodies, and less in the hands of the states or the people. This, coupled with dissatisfaction of the EU and an

There are many causes for the debt crisis to start. Before world war II Europe had very strict trade barriers between countries examples being currency exchange fees and trade tariffs. Then World War II happened and was so detrimental to Europe they couldn’t continue to have such strict trade barriers. The barriers were then slowly removed with the first barrier removal being steel and coal. This worked well enough that it caused twenty-seven countries to sign the Maastricht Treaty thus forming the European Union (UN). This made trading throughout all Europe easier which caused more trade to occur within Europe.

The rout causes of the European Debt Crisis are known. However, restoring the economies that were hardest hit is no easy task. Economist all over the world have ideas and plans that they think will work. Only time will tell what works, and the longer it takes, the harder it is on the citizens of the countries affected most.

The European Debt Crisis is a term used to describe the region's spirited struggle to repay the debt that it had borrowed in the recent decades. Five main countries in the region

The five main factors that participated and caused the debt crises in Europe are the Violation to EU rules, at the beginning of the whole story European nations were a little eager to form a monetary union that took them some several steps ending with the beginning of the euro 1999 as several participants violated and dishonored the circumstances required under the Maastricht Treaty in the year 1992. Well, there are countries such as Cyprus and Greece, these countries did not really give actual data or facts about economic and financial condition, whereas the EU completely knew about the fact that they didn’t give any real figures or facts, they just went on and ignored it but yet accepted and acknowledged the agreement of such regions to enlarge and widen the European union. The whole problem does not really position at that extend and the amount but it stands in where the EU also accepted the high budget deficit that has occurred and the debt stages /levels by some numerous countries through the crisis. Another factor that caused this collapse is the banking sector, the banking sector faced some problems that lead to debt crises, talking about the European banking sector here. It dramatically appeared to be vulnerable by showing an intense collapse since it got into the financial global chain that was unfortunately been dragged down during the financial crises in 2007. Basically there are some of the financial instruments involved that has high risk such as

The European Union (EU) was established in order to prevent the horrors of modern warfare, experienced by most of Europe during the World Wars of the 20th century, from ever ensuing again, by aiming to create an environment of trust with the countries of Europe cooperating in areas such as commerce, research and trade (Adams, 2001). The EU has evolved into an economic, trade, political and monetary alliance between twenty-eight European Member States. While not all Member States are in monetary union (i.e. share the currency of the euro), those that are form the ‘Euro-zone’ (Dinan, 2006). The EU can pass a number of types of legislation, with a regulation, act, or law, being the most powerful. Its ‘tricameral’ (European Union, 2007)