Can the Eurozone survive?

Potential prospects for the Euro as common currency beyond the sovereign-debt crisis

Term Paper , 2014 , 14 Pages , Grade: A

Economics - International Economic Relations

This report critically evaluates and addresses the past, current and the possible future situation of the Eurozone. To consider the question of whether the Eurozone will be able to survive, the first part of this report provides an overview of past developments regarding the Euro, and how the Euro’s complex history has led to the current situation, including potentially contributing factors to the crisis. The second part then focuses on the present situation: Greece causing the potential threat of a rapid domino effect that could splinter the Eurozone as a whole. Subsequently, this report evaluates if the measures, imposed by the EU, ECB and IMF will be adequate to finally resolve the crisis, before focusing on the potential future of the Euro as a common currency for Europe.

Inhaltsverzeichnis

• Index of Abbreviations
• Introduction
• Analysing the past
• The Present: Contributing factors and relevant players
• Future expectations beyond the sovereign-debt crisis
• Conclusion
• Bibliography
• Appendix

Zielsetzung und Themenschwerpunkte

This report critically evaluates and addresses the past, current and the possible future situation of the Eurozone. The report aims to analyze the historical development of the Euro, explore the contributing factors to the current economic crisis, and assess the potential future prospects of the Euro as a common currency.

• The historical development of the Euro and its origins in the collapse of the Bretton Woods agreement.
• The impact of the economic crisis of 2008 on the Eurozone and the role of Greece in the crisis.
• The effectiveness of measures imposed by the EU, ECB, and IMF in resolving the crisis.
• The potential future of the Euro as a common currency for Europe, considering the challenges and opportunities.
• The political and economic implications of the Eurozone's future.

Zusammenfassung der Kapitel

The report begins by examining the historical context of the Euro's creation, tracing its origins back to the collapse of the Bretton Woods agreement in the early 1970s. The report highlights the role of exchange-rate volatility, oil price shocks, and the desire for monetary stability in Europe as key factors leading to the introduction of the Euro. It then discusses the implementation of the Exchange Rate Mechanism (ERM) in 1979, which tied weaker European currencies to the Deutschmark, and the signing of the Single European Act in 1986, which aimed to eliminate trade barriers and financial restrictions. The report emphasizes the political and economic motivations behind the creation of the Euro, including the desire for lasting peace in Europe and the benefits of free trade and monetary stability. It also explores the role of the Maastricht Treaty in establishing the EU and the European Central Bank (ECB), and the challenges faced by some member states in meeting the Maastricht criteria.

The report then shifts its focus to the current situation, highlighting the impact of the economic crisis of 2008 on the Eurozone and the role of Greece in the crisis. It discusses the potential threat of a domino effect that could splinter the Eurozone, and the measures imposed by the EU, ECB, and IMF to address the crisis. The report explores the effectiveness of these measures and the challenges faced in resolving the crisis.

Schlüsselwörter

The keywords and focus themes of the text include the Eurozone, the Euro, the sovereign-debt crisis, the economic crisis of 2008, Greece, the European Union (EU), the European Central Bank (ECB), the International Monetary Fund (IMF), the Stability and Growth Pact (SGP), the Exchange Rate Mechanism (ERM), the Maastricht Treaty, the Bretton Woods agreement, monetary stability, free trade, and the future of the Euro as a common currency.

• College: Edinburgh Napier University (Economics)
• Grade: A
• Author: Franz-Joseph Reisner (Author)
• Publication Year: 2014
• Pages: 14
• Catalog Number: V293078
• ISBN (eBook): 9783656903611
• ISBN (Book): 9783656903628
• Language: English
• Tags: Economics, Makroökonomie, macroeconomics, Eurokrise, euro, euro crisis, Grexit, Brexit, souveraign debt, sovereign debt, European union, European debt crisis, ecb, Greece, IMF, bailout, periphery states, inflation, deficit spending