Tomorrow is Euro's 11th birthday, after 5 expansions, members of Euro-Zone have increased from 11 to 17, and it has become the second important currency of the world after dollar. From the time was born, Euro had many emergency times, so does now.
The brightest time has gone, and now euro has to face a cruel reality, some members of Euro-Zone have terrible budget problems. Now Greece and Ireland has been forced to execute their debt restructuring and special rescue plans and Portugal and Spain are in danger. The domino effect of debt crisis makes ECB always in a gloomy mood.
Compare with perfect unify currency, the appearance of euro only unified the currency policy of members, but not the financial policy. This inherent defect breeds the hodiernal crisis. As the feedback of this crisis, the members of euro zone start to perfect the economy regulation of euro zone. They want to solve the inherent defect.
Large-scale financial contraction measures have published one after another, and plan to reduce the budget under the safe line in 3 or 4 years. Although the rebound of euro can be expected, the aging of population, debt unbalance among members and weakness of reformation still enslave the scale of rebound. Also the US economy and Dollar policy can affect the situation of Euro, but to be honest, I don’t think Euro Zone will fall apart as some opinions of skeptics. For all the members of Euro Zone, give up Euro not only can overturn their economies, but also their politics. The only chance for Euro is keep going down, and find opportunities from the incorporative progresses.
No comments:
Post a Comment