The Euro Crisis

THE EURO ZONE STATES ARE EXPERIENCING AN ECONOMIC CRISIS THAT RAISES CERTAIN QUESTIONS. FIRSTLY THE AUTHOR REMINDS US OF THE REASONS FOR THE INTRODUCTION OF THE SINGLE CURRENCY AND THE INSTITUTIONAL STRUCTURE OF THE EURO ZONE BEFORE THE START OF THE DEBT CRISIS. HE THEN PRESENTS THE ECONOMIC RESULTS OF THE FIRST TEN YEARS OF THE EURO, MARKED BY GOOD RESULTS AS FAR AS GROWTH AND INTERNATIONAL CREDIBILITY ARE CONCERNED; HE THEN ILLUSTRATES THAT THERE IS ALSO AN INCREASING DIFFERENCE IN COMPETITIVENESS BETWEEN THE NORTH AND THE SOUTH, WHICH DOES NOT SEEM DIRECTLY DUE TO THE SINGLE CURRENCY PER SE BUT WHICH DOES CALL FOR COMMON BUDGETARY DISCIPLINE RULES. FINALLY THE AUTHOR PRESENTS THE FEATURES OF THE SOVEREIGN DEBT CRISIS, ITS EFFECTS ON THE FINANCIAL SECTOR AND ON THE REAL ECONOMY, AS WELL AS THE MEASURES TAKEN TO SETTLE IT.

• Primary Source

ESO: Key Source: The Euro Crisis http://www.europeansources.info/record/the-euro-crisis-key-sources/

ESO: Background information: The financial crisis - facts and policies http://www.europeansources.info/record/the-financial-crisis-facts-and-policies/

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