Euro: Reflection of Eurozone

jyotsnathakur By jyotsnathakur, 26th Mar 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/at6xqvbx/
Posted in Wikinut>Business>Analysis

the resurgence of the golden period seems impossible for the great mascot of European Union in foreseeable time.

Euro: Reflection of Eurozone

In the year 1999, European Union called Eurozone was constituted for economic viability and integrity within European nations. Euro as the common currency of all the seventeen nations, comprising the eurozone, got established. European Central Bank became the governing body of this new exchange medium. By 2002, almost entire Europe got economically united under the powerful umbrella of euro. Euro, as the symbol of this unison, gave a new face to the otherwise unrecognized and divided economies. History was made in the politico-economic arena of every country involved and the world economy on the whole.

Euro heralded surging of a new era, a currency with the capacity to challenge the authority of US Dollar was born. The insurmountable i.e. United States of America was about to be conquered. Trade, business and economic environment boomed in major span of last decade. Combined gdp of eurozone took a quarter away from the total world gdp. This economic power shift got amply reflected in the performance of euro against us dollar during the past gone by years, with euro touching its life time high in mid 2008. Therefore, euro flexed its muscles in tandem with eurozone’s ascension to power.

Then came the worst financial crisis in early 2008 which escalated by the latter half of the year, wherein European Union went into slump. Eurozone fell prey to the debt trap caused by excessive government expenditure, rising trade deficit and large bailout packages to the financial sector. Among the culprit were the member countries like Greece, Italy, Ireland and Portugal. Even the helping hands of IMF and ECB could not rescue the ailing economies. As a result, it became an uphill task for Euro to reclaim its past glory. Now, the resurgence of the golden period seems impossible for the great mascot of European Union in foreseeable time.

Tags

Bailout Packages, Currency, Debt Crisis, Debt Trap, Ecb, Economy, Euro, European Central Bank, European Union, Eurozone, Exchange, Expenditure, Financial, Gdp, Glory, Government, Greece, Imf, Ireland, Italy, Politico-Economic, Portugal, Rescue, Sector, Trade, Trade Deficit, Us Dollar, Viability, World

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author avatar jyotsnathakur
Hello Friends,

I have a great penchant for writing on plethora of subjects. Basically, there is a philosopher inside me who has a knack of having unique perspective towards varied world phenomena.

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Comments

author avatar Sivaramakrishnan A
26th Mar 2012 (#)

Even weaker economies rode on the shoulders of the wealthy, disciplined countries like Germany. They could borrow at rates which they were not elegible for, based on their economic and fiscal prudence. Now, they may have to grow up to face harsh reality on their own! Thanks, Jyotsna for the share - siva

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author avatar jyotsnathakur
26th Mar 2012 (#)

the moot question is 'should Germany and France pay such huge price for keeping EuroZone intact?'

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author avatar Sivaramakrishnan A
26th Mar 2012 (#)

Obviously it is too much of a burden for them - they have bitten more than they can chew! Only time will tell whether Eurozone will survive - siva

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author avatar jyotsnathakur
27th Mar 2012 (#)

survival of eurozone would be a financial miracle, nothing less.

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