Euro Crisis and Social Inequality

830 Words4 Pages
The EU or The European Union was established in 1935, it presently establishes a shared market among its current 28 member countries that are located in Europe. The EU has its own parliament and banking system where 13 members states are operating under the common currency the “Euro”. The purpose of EU is to develop a sense of unity and promote economic and social development where Europeans feel unrestricted and have a sense of justice equality and freedom in their own countries and when they travel to other EU countries. The Eurozone crisis is a banking debt and combined government debt crisis that introduced unfavorable economic effects for certain countries to repay or refinance their government debt. The damage caused by the Euro Crisis has had unequal effects on the division of countries as the markets lost confidence in the government’s ability to pay back what the countries owed relating to social inequality and spatial justice concerns. The key aspects of social inequality in the EU are rather distinct with large regional disparities in GDP per capita and unemployment and poverty rates across Europe, The Central and Northern industrialized regions of Europe are in healthier economic positions such as UK, Switzerland, Norway Luxembourg, and Germany. The Eurozone crisis has become a social crisis for the eastern and some southern parts of the EU such as Greece, Spain and Portugal, which suffer from the highest unemployment and poverty rates. Unemployment rates for Greece when the euro crisis hit was at 9.5% of the population in 2009 and has been extremely increasing each year where it is at 24.3% in 2012. The trend is the same for Spain at 25.0% in 2012 and Portugal at 15.9%, which has the 3rd highest unemployment rate in... ... middle of paper ... ...an 2014]. Jones, A., Clark, J. & Cameron, A. (2010). The global economic crisis and the cohesion of europe. [online] Retrieved from: http://bellwether.metapress.com.ezproxy.library.yorku.ca/content/x51530738807q756/fulltext.pdf [Accessed: 4 Jan 2014]. Martin, P. (2014). The geography of inequalities in europe. [online] Retrieved from: http://econ.sciences-po.fr/sites/default/files/martinp/swedish.pdf [Accessed: 8 Jan 2014]. Matsaganis, M. & Leventi, C. (2011). Inequality, poverty and the crisis in greece. Etui policy brief, (5). Orange, P. (2013). Top 10 highly developed countries - listverse. [online] Retrieved from: http://listverse.com/2012/02/13/top-10-highly-developed-countries/ [Accessed: 2nd Jan 2014]. Simonazzi, A., Ginzburg, A. & Nocella, G. (2013). Economic relations between Germany and southern Europe. Cambridge journal of economics, 37 (3), pp. 653--675.

More about Euro Crisis and Social Inequality

Open Document