Eurozone Crisis

Eurozone Crisis

Eurozone Crisis

Introduction

After several years Europe has once again became an economic crisis centre in 2010. According to Durand and Kechuyuan (2012-2013) wrote in his article that the financial and economic crisis of Europe have made all the countries and economies to think and integrate in order to save the whole Europe from this crisis. The crisis faced by Europe urged the countries to develop integration between the institutions so that monetary, financial and budgetary policies are designed within the Europe. There are several articles that provides an analysis of the role of European Union financial institution and these researches take into consideration a theoretical framework that takes in to consideration Gramscian theory of crisis. These studies will help in providing an economic analysis report regarding the crisis in the Eurozone, the role of different institutions in providing solutions for the crisis and the view of Gramscian school of thought. The Gramscian school of thought will also provide political role of different governments either democratic or liberal governments in overcoming the crisis in the Eurozone.

Literature Review

According to Jackson (2009) many of the European countries were not accepting the fact that Eurozone was in a crisis situation. They believed that it was an American perception about the different economic conditions in the world. with the passage of times things started getting worse and most of the economies in Europe were facing economic downturns as trade started to decline and industries started to decrease their outputs. People started to show their resentment on the streets as they were unable to get employment opportunities. The political and economic turmoil made it difficult for the political leaders in many countries to save their stakes in the government. European countries are a big craving ground for the United States of America so the longer the time gets for the European economies to recover the more it gets difficult and a huge loss to the American economy and political relationship. According to Hovi (et al., 2003) in his work provided the view that there were countries that were not influenced by American and wanted to create a unification block of countries that are not breeding grounds for America.

European Union has taken several steps to try to save its financial institutions from getting financially weak and bankrupt. The governments of the suffering countries took several steps in order to rescue their institutions like the governments instead of spending on public activities shifted all their resources in order to save the drowning banks in the country, the government used all the monetary and fiscal policy tools protect the depositors and show their support to the financial institutions in the country. The government also tried not to make the credit market static and tried to sustain or increase economic growth in the country which seems inevitable. The European Union governments tried to enforce both the internal and foreign policies that could save the wealth from getting worse. It tried not only to support the financial institutions and businesses but ...