EU policies aim to ensure the free movement of people, goods, services, and capital, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development. So why did Greece Crisis happened? The economy of Greece was influenced so badly by the global financial crisis in 2008, and also Greece’s weak tax collecting systems and its recent high spending of money for Olympic, military expenditures, and so on have led to a great increase its public debt and deficit. In fact, wealthy western Europe states such as German and France have funded poor southern Europe states, but moral hazard and other kind of corruptions in southern Europe states such as Greece, Italy, Spain, and Portugal have leaded them to finance deficit and debt, and as a result, it has so badly affected western Europe’s economy as domino effect. Now it is the European debt crisis that cause by Greece crisis.
The Euro In Europe, the debut of the euro is widely hailed as the most important event affecting the international monetary landscape since the breakup of the Bretton Woods System in 1971 to 1973, or since the Bretton Woods Agreement in 1944, or maybe even since the founding of the Federal Reserve System in 1913. It has become a contest for European officials and commentators to see who can push the analogy back furthest in time. Eminences elsewhere in the world have similarly greeted the euro with high hopes and great expectations. Only in the United States has the euro been greeted with a yawn. It is not hard to see why.
While factors such as economic growth and cooperation appear highly favorable, they are also the downfall of the European Union. Tied together financially, the EU is a delicate system of regulations, yet is run by mere power-hungry bureaucrats. And, unlike the rest of the modernized world, the EU is slowly abolishing democracy under the name of progression. Losing supporters by the British pound, the dissolving of the EU is not only pivotal to regional European success, but rather eminent nonetheless.
When the housing bubble burst, unemployment rose along with people receiving welfare on the few taxpayers’ dime. With little incoming revenue and a growing populace depending on assistance fro... ... middle of paper ... ...mises get larger, one begins to wonder where the money for these packages is coming from, but most importantly, one wonders if the EU will survive this turmoil. As international cooperation begins to deteriorate in the EU, due to each country’s own handling of its debt, the tension between the countries began to grow. Some believe that the EU will collapse as the euro eventually becomes worthless due the constant borrowing to pay for the governments’ bailouts. While there is a chance of a collapse, the possibility remains almost non-existent.
In developing countries the effect of the financial crisis persist while in the developed countries it only last for a while as they are fast in designing and implementing new financial policies that counter the crisis immediately. It is notable that even after these develop countries adopt the counter policies, the results do not come as fast as may be expected thus the recovery process can be said to be weak. The delay in recovery can be attributed to the negligence of policymakers in these countries who tend to underestimate the intensity of the crisis. Public debts have been one of the most common ways of dealing with the financial crisis. For example, several countries Europe transformed the financial crisis into sovereign debt crisis.
Today however Europeans are asked to put aside their differences and become one. With nationalism still strong throughout Europe many people are strongly against the E.U. Analysts strongly suggest, however, that the E.U. is the only way Europe can improve it's economy. Unemployment in most of Europe is running above 10 percent and countries like Germany and France are suffering from net investment outflows, European economies are groaning under the weight of rigid regulation, high labor costs, high taxes and generous social services that have become too expensive to sustain.
The crisis has made it extremely difficult for countries such as Greece to refinance their government debt without the aid of third party such as the European Central Bank (ECB) or the International Monetary Fund. Many may argue that the Eurozone crisis is over. In fact if the Eurozone crisis was really over, then Greece wouldn’t still be requesting for aid as Figure 3 shows increasing debt from 2009 onwards or Spain’s unemployment rate wouldn’t stop rising as Figure 2 shows. Consequently, economic growths have been slow and the sovereign debts have accumulated, making the Eurozone crisis is far from over until economic growth and unemployment is stabilized. The Eurozone crisis across Europe can be blamed on the collapsed globalization of finances, international trade imbalances, and the bubble of the property market.
The spread of this crisis to other EU countries such as Ireland resulted in a further indebted Europe, and a difficult situation to recover from. The emergency measures which inevitably were required to take place in turn resulted in the lowering of the country’s debt, but meant that these countries became dependent on organizations such as the European Financial Stability Facility and the International Monetary Fund. This bailout will likely lead to more draconian measures taking place, and many EU countries losing control of its own finances. The future of the euro is at stake, and so is the dignity and prosperity of some of the world’s most formally praised nations. .
These industries have a fixed low tariff level between 2000 - 2005, to allow them to restructure and become more internationally competitive. Australia's tariff reduction levels have gone way below those required by international trade agreement such as WTO agreement and the APEC. Australia in the last ... ... middle of paper ... ...d this would affect the voting ratios for the government as benefits of tariff reductions and free trade promotion would take a much longer period to arrive. Through the significant change of Australia's protection levels and the promotion of free trade, it is obvious that Australia's major trading partners is shifting from European countries to the high trading potential Asian countries. This is due the enormous demand in many developing countries, which results in a greater market for export.
We have shown since 1979 that we are more than capable of trading and competing in an open market. After joining the Euro, Britain couldn't change it's mind and back out. We would be trapped as a European dependant monetary system. The exchange rate mechanism, where we linked our currencies with Europe between 1990-1992, turned out to cause recession, high mortgage rates, a slumping housing market, an increase in bankruptcies and many jobs were lost. This was because British short-term interest rates were effectively determined by the inappropriately high German rates.