Thursday, March 18, 2010
* Business * Europe Greek PM gives European leaders a week to produce rescue plan
This article brings up two points: First, the Greek government is unable to manage its own budget deficits, and Second, it has lost faith in the European Union to rescue it from the budget crisis. It's interesting how countries have lost the ability - at least in democratic states - to implement massive budget overhauls. And the Eurozone's inability to handle its first economic crisis since the Euro was adopted means there could be trouble for the fledgling currency.
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2 comments:
This is interesting because what happens over the following week can have a great impact on the E.U. and how it is run. If the E.U. is able to sustain this blemish without having major countries like Germany and France leave this may greatly effect the requirements for other countries trying to join later.
I agree with Kevin Nishimoto that this could lead to major issues for the E.U. Not all members of the E.U. use the euro. Many feel that it takes away their power to deal with issues like an economic downturn. Although the idea of the euro was a great way to unite Europe and ease travel on the continent, the E.U. countries may be too different in their economic systems to act as a single unit. It seems that the eurozone will slowly break up, even if efforts to help Greece are successful. This has exposed a major flaw in the system that the E.U. may not be able to fix.
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