Will the Euro Currency Bloc Fail?

Twenty-seven European countries are members of the European Union, an association loosely woven designed to enhance the competitiveness of Europe and the United States, China and India. Sixteen members of the EU countries that have adopted the euro as their official currency, and five other European countries using the euro unofficially.





In continental Europe forged its economic alliance leaders hope that the adoption of a single currency could protect its members against the radical changes in the value of their national currencies would protect states and their national credit ratings. In the brief history of the EU, the euro has met the expectations of the members. Recently, however, the sharp declines in the economies of several Member States have caused sharp declines in the value of the euro and raised new doubts about the long-term benefit of an international currency.

In theory, the use of a single currency facilitates the movement of goods and services across international borders, maintaining the euro zone's second largest economy. Equally important, the strongest EU economies to keep the value relative to the euro, especially in African countries emerging from the United coins.

History shows that, as long as the economies of European countries support an annual growth of at least 2.5%, the euro remains strong in international trade, and the benefit of all partners. More recently, history shows, however, the economic decline in a handful of dangerous creates uncertainty Member States in the European market. More recently, the deep economic problems of Greece, the euro fell near record lows against the U.S. dollar and sterling.

While no one expects that the dissolution of bold economic partnership of Europe, widespread economic hardship cast a very dark ominous cloud over the prospects of EU enlargement.

Diseases and decreased heart

Two of the biggest euro zone economies struggle facing a serious economic crisis, and all the nations of twenty members feel the unit in which the value of the euro-lowering effects. The Spanish government is struggling with negative growth and rising unemployment and little hope of relief in 2010. And Greece's credit decreased by leading placement services, international work under enormous national debt and over 12% of GDP budget deficit.

Since early 2010, the two governments have taken strong measures to reduce public spending and increase revenue, but tough measures to reassure EU partners bear the brunt of working poor as nations. In Greece and Spain, labor unrest has reduced productivity, contributing to imbalances in trade and reduce government revenues.

The discontent and confusion around the periphery

Especially following the Greek problems, five candidates for accession to the EU have put off plans to join.

For at least a decade, European leaders have expected the former communist countries to join the EU, which naturally increases the business community, and significantly increase its production capacity. In recent years, Poland and the Baltic States have shown their desire to belong and have taken measures to support their economies to meet the accession criteria.

Especially in the Baltic countries, countries have increased rapidly recession starting in 2008. Now, the most promising battle their own recessions and swelling budget deficits, making his sovereign "good shake" to fall in the euro currency, and draining public support for EU membership. Candidates Almost half of the Poles and Czechs now want to postpone indefinitely the accession of the EU.