el euro como problema

7/21/2019 El Euro Como Problema

http://slidepdf.com/reader/full/el-euro-como-problema 1/6

Fernando Martin

The Euro as the

problem: the role

of the commoncurrency in the

EU crisis

• Introduction



• The birth of the Euro: an Incomplete work

• ...And the crisis came: the test of the euro

• What can be done? A guide for Europe

• ibliography



When Lehman Brothers went into bankruptcy in 2007 and

the US fell into a sudden crisis, in the Euroone some sense

of secret !oy arose" #n the one hand, the continental model

of economy which arose from the $aastricht treaty based

on %&scal responsibility' was bein( immune to this crisisand pro)in( its superiority towards the *n(lo+Saon world,

which was fallin( into (rowin( de&cit and depression" -n

addition, the European elites were sure that their banks and

&nancial systems were %.oo bi( to fall' /which paradoically

was the strate(y that was followed in Lehman brothers until

its sudden bankruptcy"

1owe)er, tides soon chan(ed and the crisis uickly

etended to the Euroone, causin( the bi((est crisis sincethe creation of the union" 3urthermore, while the US and the

rest of the de)eloped world reco)ered from the crisis shortly

after, the Euroone has fell further and further into the

depression, creatin( a bi( and perhaps !usti&ed amount of

doubts towards the European pro!ect"

-n the followin( work - will analye the ma!or role that the

Euro has played in the economic de)elopment of the

Euroone since it implementation on 2004 and theimperfections and errors that were present in the currency

since its )ery creation and how it helped to create the

problems amon( the member countries which later on

a((ra)ated the crisis"

Later on, - would analye the e5ect that the euro has had in

the economic crisis and how it has make more di6cult a

real and stable economic (rowth of the Euroone in (eneraland of the %peripheral countries' /or -8S in particular"

.o &nish with, - will propose a series of solutions or possible

scenarios that the Euroone countries could follow to

impro)e their economic performance"



9e(ardin( the sources - ha)e used - ha)e found a uite

interestin( phenomena" 9e(ardin( countries which

currently are in the Euroone, there seems to be a uite

etended a(reement amon( the establishment that the

European currency has been mostly fa)orable, so in orderto &nd some critical positions towards the pro!ect - ha)e

used some %heterodo sources'" 1owe)er, in other

countries /mostly in the *n(lo Saon world there has been

always doubts towards the Euro, so the literature is

abundant and a lot of it comes from some of the most

important and respected economic commentators, as -

would show in the work"



.he birth of the Euro: an incomplete work

Why was the euro created; .his is a uestion that we must

answer before enterin( the system itself, as some of its

failures of desi(n and functionin( partially came from the

ob!ecti)es that were in the minds of the creators of the

currency"

.he historical contet of the creation of the Europe is of the

utmost importance" *nd it was a period of !oy, at least fromthe point of )iew of the Western Europeans" *fter the <old

War Europe was becomin( united a(ain, the eastern

European countries were willin( to become more

democratic and to open their economy in order to be

accepted into the EU and the shadows of totalitarianism

were distant" .he end of history was proclaimed, and under

the !a" Americana liberal capitalism was rapidly spreadin(

throu(h the whole (lobe, so the uestion for the Europeanelites was to &nd a way for the little European countries to

stay as a rele)ant force in a world in where %super+

countries' such as 9ussia and <hina were emer(in(" .he

answer that pre)ailed in most of Western Europe was to

deepen the inte(ration process within the European Union"

* common currency was seen as an optimal step for some

of the followin( reasons such as the

+Less so)erei(nty" /4 currency policy,2= &scal policies

+Euro created to a)oid de)aluations

+Lack of democratic control o)er the central bank

+durin( the crisis producti)ity couldn>t increase in the

peripheral countries due to impossibility of de)aluation, so

it had to increase throu(h internal de)aluation /austerity"



+8a)e false sense of stability to countries which allowed

them to buy more debt"

+.ry to become a %reser)e currency' in opposition to the

dollar"

el euro como problema

Documents