Euro Zone Struggling Amid Economic Hardships
After the financial crisis in Greece, Ireland also shows signs of a struggle against the risk of default.
A few days ago the Council of Economic Ministers of the European Community agreed on yet another plan for aid to help countries in need. All this instability does is highlight all the pitfalls of building a European Union very difficult. There is often a comparison with the U.S. and with the ability of this nation to be a federal state. I would like to forget historical aspects that are still essential to understanding how different is the starting point from which Europe is playing with the U.S. to concentrate on economic factors. The strength of the euro is certainly essential to maintain stability within the countries that make up Europe, but equally important is the relationship of that currency with the U.S. dollar.
The U.S. government is pushing for an international monetary stability for a more substantial structural recovery, but it certainly is not for us Europeans too useful to have a strong currency against the dollar. Exports of goods and services would suffer enormously. It's true that at a time like the present one in which resources such as oil are under stress, the strength of the euro may be useful to European companies. We should not forget the emerging economies and conservative monetary policies in some countries such as China.
This globalization still shows its flaws dictated by a different dynamic between real markets and financial markets, the latter with a large influence on the cycles of growth and at a different speed of adjustment between emerging countries, the USA and the continent.
In all of this in Europe is widening even more the difference between poor and rich with the continued erosion of what was once the middle class, first of all because to impose a single currency before you set a homogenization of the economies has greatly reduced the purchasing power also the absence of rules in financial markets has acted as a multiplier on the effect of economic crisis.
In short, more and more the percentage increases of the Eurosceptics, which is accompanied by a growing anti-globalization sentiment in favor of a nationalist sentiment.