1. where do you see the economy of Europe heading?
2. any signs of recovery?
The Euro Crisis
The economy of Europe is approaching its deathbed, if necessary steps to reverse the underlying causes of its decline are not addressed by both the ruling class and economists. Clearly, there lacks a clear policy framework among member states on how to avoid the market panic that is gripping them. If resolved, the crisis will have been partially addressed. It is vital for the member states to stress on the need for managing the uncertainties brought about by the slow expansion of the euro area (Csorba 45-50).
Arguably, governments, who are key players of the system, are taking the necessary steps, but in a considerably slow pace. By dragging their feet to reforms in the economic sector, Europe is not quickly coping up with the crisis. Euro has eliminated some of the panics that member states had to grapple with. For the efficient and effective coordination of their currencies, the euro was begotten. It served the role of coordinating their currencies and playing the role of ranking. This has to a great extent reduced the uncertainties of the key players (Csorba 45-50).
But in the long run, it is apparent that this ranking institution has raised the level of competition among currencies of the key players. Thus it has resurrected the fears which the members’ states intended to thwart. This brings us to the conclusion that the institution alone is not enough a solution to the euro crisis. It is why a clear policy framework is needed by the key players, which brings our attention to governments of the members’ states (Csorba 45-50).
At this juncture, chances of economic recovery are slimming by the day. For the coordinating role of the euro may become unsustainable in the foreseeable future, should the prospering states forming the community fail to adequately fund it. On the same scale, the phantom of unemployment is bedeviling members, making the situation to get out of hand (Csorba 45-50). With this state of affairs, empty rhetoric by leaders who make decisions on behalf of their electorates, is not welcomed.
Csorba, L. “The Crisis and Possible Future of Euro as an Institution.” Journal of GSTF Business Review 1 (2012): 45-50. 11 Oct. 2012. <http://www.proquest.com>.