Some ten years ago some of the member nations of Europe united with the basic thought to strengthen the bond amongst various member nations to improve both the economic conditions and political relations. In achieving foreign exchange currencies this supported a lot but however, created negative effects to the European economy. This influenced the Europe, entire countries of EC and along with the member nations that are a part of Eurozone.
This has also affected Greece to a great extent. The despair of the debt situated in Greece might be considered as the tip of an iceberg. This is because various other countries like Ireland, Spain, Italy and Portugal might require some help from their IMF or International Monetary Fund. They would also have to ask loans from their neighbor countries of Europe.
Talking in detail, to have a single centralized European bank with one interest rate and single currency (EURO) it will result in more strength and unity for all those who are involved in this. This is because it is the super state which will highlight in the United States, where the form of federal government will manage the different states. Although, it is the rule in US that the individual states show their personal tax raising power along with the Federal Reserve which decides the interest rate of the bank for the entire country. This is the reason where occurs the dissimilarity.
So it is better for Europe to have a European bank that is standard, one currency and single interest rate. This will not strengthen the economy but also unite different member nations who are a part of the Eurozone. The reason is it is the major state which would reflect its conditions in the US that uses federal form of government to control various states. The Federal Reserve in United States declares the interest rate of bank for the whole country and also the independent states follow the rule to show the tax raising power of their own. Here comes the difference.
The major reason that does not support the idea of single economy in Europe is the national differences. All the governments involved in the present 16 nation Eurozone are diverse with variety of languages that they speak. The member nations of Eurozone also show varied economy rates such as Netherlands has unemployment up to 4.1% and Spain having unemployment percentage of 19.1%.
Also, the different economy of various states of Europe can be very well analyzed by comparing the unemployment level in Spain and Netherland. The former shows 19.1% and the later 4.1%, wide difference! Government is making efforts in the interest rate to reduce inflation and unemployment, however, not yet achieved the goal. The issue here is "one size for all" kind of system that is very difficult to achieve. In order to kick start their banks and improve their economy the European government is working very hard and has also put large sum of money for that. Perhaps, the fear and hatred that you see in Germany is because of the fact that the European government was given the liability to secure the Greece economy.
Suppose the bond of Greek administration ends then it would severely affect the other banks in different countries of Europe with devastating results. The debts are in trillions which even IMF could not bear to recover the economies of the nations which could even probably include the United Kingdom.
But now, European government is working a lot to improve their economy and not to create any major downfalls as those were seen in Spain.
This has also affected Greece to a great extent. The despair of the debt situated in Greece might be considered as the tip of an iceberg. This is because various other countries like Ireland, Spain, Italy and Portugal might require some help from their IMF or International Monetary Fund. They would also have to ask loans from their neighbor countries of Europe.
Talking in detail, to have a single centralized European bank with one interest rate and single currency (EURO) it will result in more strength and unity for all those who are involved in this. This is because it is the super state which will highlight in the United States, where the form of federal government will manage the different states. Although, it is the rule in US that the individual states show their personal tax raising power along with the Federal Reserve which decides the interest rate of the bank for the entire country. This is the reason where occurs the dissimilarity.
So it is better for Europe to have a European bank that is standard, one currency and single interest rate. This will not strengthen the economy but also unite different member nations who are a part of the Eurozone. The reason is it is the major state which would reflect its conditions in the US that uses federal form of government to control various states. The Federal Reserve in United States declares the interest rate of bank for the whole country and also the independent states follow the rule to show the tax raising power of their own. Here comes the difference.
The major reason that does not support the idea of single economy in Europe is the national differences. All the governments involved in the present 16 nation Eurozone are diverse with variety of languages that they speak. The member nations of Eurozone also show varied economy rates such as Netherlands has unemployment up to 4.1% and Spain having unemployment percentage of 19.1%.
Also, the different economy of various states of Europe can be very well analyzed by comparing the unemployment level in Spain and Netherland. The former shows 19.1% and the later 4.1%, wide difference! Government is making efforts in the interest rate to reduce inflation and unemployment, however, not yet achieved the goal. The issue here is "one size for all" kind of system that is very difficult to achieve. In order to kick start their banks and improve their economy the European government is working very hard and has also put large sum of money for that. Perhaps, the fear and hatred that you see in Germany is because of the fact that the European government was given the liability to secure the Greece economy.
Suppose the bond of Greek administration ends then it would severely affect the other banks in different countries of Europe with devastating results. The debts are in trillions which even IMF could not bear to recover the economies of the nations which could even probably include the United Kingdom.
But now, European government is working a lot to improve their economy and not to create any major downfalls as those were seen in Spain.
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