Euro

Many European countries use a common capital the euro. However there has not been any sh bed political structure that regulates how the countries operate monetarily and many of these governments ran up as untold debt as they could dispirit away with. Recently, Greece has got to the point where it cant pay its debt, so it has to borrow money from the rest of the countries. At which point, the other countries demanded to see the records and were shocked to see the seriousness of Greeces debt. The European crisis is centered around five indebted countries which leave behind Greece, Italy, Ireland, Portugal and Spain. The concern is the extent to which their debt has exceeded their ability to repay it. In any(prenominal) of these countries, the debt reaches high percentages of their gross domestic product. Greece has a fairly lower-ranking economy, but if Greece goes into default, then there could be a sweetness sand verbena effect and affect other European countries. Euro pean countries are caught in a bad situation. mend they dont want to see member countries of the EU go into default, in range to prevent it the stronger countries, such as Germany and France, have to submit the specie to bail out the weaker countries.

on that points a lot of resistance among these countries about place up those funds and as a result, the supplyer countries are demanding that places corresponding Greece give brisk-fangled measures, in order to raise taxes, bring out depreciate /wages, in order to cut the level of their debt. The best stemma would be to bail out the smaller countries beca use if they convert congest to their own c! urrencies it bequeath increase the value of the Euro but the new currencies would fall. Plus, implementing a new currency takes a lot of ideal of conviction and planning and the European nation has to do something soon. The European crisis by all odds affects the US because the largest banks in this solid ground are invested in European countries. These banks have already cut lending and would have to lend even less because they will have to reserve...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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