Euro zone Cri-sis == World Cri-sis


This article has been submitted by Vivek Sridhar for the CLATGyan Blog Post Writing Competition. If you think this article is a good read, ‘Like’ this article on Facebook (the button is at the bottom of this piece) or post a comment using the ‘comments’ section below.

Britain being a part of European union is not a member country in the Euro zone. Countries of the Euro zone are those who have adopted euro as their common currency i.e. France, Germany, Belgium ,etc .Today’s Economic crisis is wiping out economies of many of EU countries and hence destabilizing the Euro and the Whole European economic system. Britain’s stand of not joining the Euro zone has been vindicated.

Greece has been the worst affected countries among the Euro zone nations .The crisis in Greece has lead to the weakening of the Euro zone, where even after consecutive bailouts haven’t helped Greece to recover from dreadful situation .This has also lead to the further more weakening of the Euro. This crisis has been like an pandemic disease where when one country is affected everyone is affected. And this disease has seemed to spread to countries such as Ireland, Portugal with Greece, where it seems only a miracle can save these countries. Leaving the Euro zone, it has also affected other countries, where Prime minister of India Dr.Manmohan Singh has blamed the cause of falling rupee on the Euro zone crisis which has lead to steepest increase in fuel price because of the weak rupee.

Because of the Euro zone crisis there also has been a political impact on the countries affected by the crisis. Countries such as Greece where in the first time in the history of the country, at which the bipartisanship (consisted of PASOK and New Democracy parties), which ruled the country for over 40 years, collapsed due to mismanagement and inability to contain the crisis .In France, it was first time since 1981,that an incumbent failed to gain a second term, when Nicholas Sarkozy lost to Francois Hollande .There have been many such Political Impacts on other Euro zone countries as well.

On further reading we see the France and Germany have been seen as Pillars of the European economy and the Euro zone. They have helped the countries in the Euro zone who faced economic crisis. On doing this they are risking their own country’s economic stability. Recently French president Nicholas Sarkozy and German Chancellor Angela Merkel pledged to save the Euro zone, it seems to be a hard task now because there has been a speculation of the breakup of Euro zone. There have been many country’s facing economic problems in the European economy i.e. Spain, France, Belgium. Euro zone crisis is threat to global economy. The worst is yet to come for the World economy and for the European economy.

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