The Euro crisis

by cthiemonge on February 28, 2013 - 9:18am

The economic crisis



As you may know the world has known a huge economic crisis in 2008. Some countries are getting better and better like the United States but some are getting even worse than ever. It first began with Greece but now it is touching all European Union and sooner or later, the entire world again. Europe is making its best so that it will not happen. In this post I will be using two news articles from the National Post, one from Jonathan Ratner and one from Heather Scoffield. My academic journal is from CUI Rui.


The first news article is about the Italian parties who have to create a coalition to get the political structure to get out of the economic drop. Economists say the political fight is slowing the economy and that measure need to be made. If the political parties can’t agree fast, the European Union will lose his partnership with the other countries because the Italian will not be able to make decisions. There is also that if they do not react quickly, outside intervention will almost be impossible. Experts think that elections could be made in May or June but banks of Europe fear an unstable party. The economist Barclay is more optimists. He thinks the economy of Italia will be stabilized until the elections. He also assures those investors are already planning on investing in Italian economy. For now on, they wait and see what is coming.  The second article is about the Canadian banks that are negotiating with the European Union for trades. Canada does not want Europe to have control of his market, but they both want access to each other’s one. Canada wants to have complete control of his finance with Europe and being able to block any risky transaction because some investor are desperate to make incomes. The problem is that Europe may not be able to agree to those terms. They have to get a viable investment at long terms. A trade that can end at any moment is not good for them. The Canadian banks also want a government participation, which would help resolving conflicts between the banks. Europe isn’t really sure if they want that too. They feel like they have to make Canada’s banks bend their knees and agree to their demands. They have to push hard for this. Canada has one of the most reliable banks in the world. An agreement without restrictions would help them get some reputation in the industry and get new contracts. Canada would win a lot in being one of the important investor in Europe economy, but it has been one year till the negotiation have begun. They have to make a safe and good agreement, but it is not over yet. My article is based on economy, or simpler, mathematics. This article explains why there is an economic crisis. Because of capitalism, industries have expended all around the world. They are dependent of the other countries to function well. For, example: If a crisis explodes in China, the Americans will suffer about it also. If they suffer, another country suffers too. It is a domino effect. Obviously it takes more than one country, even one big as China to create a crisis, but it’s the principal. It also explain that the fact that many countries are using the same currency is accelerating it because if one country makes the value of its currency go down, the currency of many other countries is going down too. For example, in Europe the Greece dept made the Euro’s value drop which is mostly why there is still a crisis in Europe.


In conclusion, the National crisis could have been stopped with more regulation in the accords between the countries and a better capitalism system. The European crisis is mostly because of Greece fall into dept dropping many countries currency at a time.





-Ratlay, Jonathan, “Italy faces dangerous political impasse”, National Post web, Investing (2013): n.pag.web 1, February .2013.


-Scoffield, Heather, “Canada’s banking sector protections under attack in EU trade talks, document shows”, National Post web, Investing (2013): n.pag.web, February .2013.


-Rui, CUI, “Causes and Enlightenments of European Debt Crisis on China's Participation in East Asia's Monetary Cooperation.”, Canadien social science web, Money (2012): Vol. 8 Issue 6, p179-181, 3p, 1 Diagram. December. 2012



 I believe you have chosen an important subject, and I am surprised on how media does not talk about it as much as they should. If this crisis leads European economy falling, ours will follow and we do not want to experience what our great grandparent and grandparents experienced… the Great Depression. 

The Euro was first put in place so that the convergence of money could be borrowed at the same rate for all European countries. This was good for about a decade but then countries like Germany grew apart with their economy booming and leaving the other countries like Greece who were mainly importing, going into deficit.

I mentioned this piece of information to explain it is hard to make a perfect world, because some parties will benefit more than others. This is the story of life, as we know it! 

So when will this crisis be fixed?

This Economic crisis in the Europe is getting serious, thank you for informing us. Up until now many have heard of economic troubles in the United States, but little attention is given to this crisis in Europe. Consequently, a few know about the effects that could occur if their economy fails. What also seems troubling is that little media coverage is been given to this issue as mentioned by the previous comment. To the point that the Canadian Banks are having negotiation with the Europeans banks and many are still in the dim light. Doing more research it turns out the hole is getting deeper for these Europeans nations. According to the article “Low inflation, high jobless rate show euro crisis impact” published by Ethan Bilby and Robin Emmott of Reuters, the situation is getting worse. Annual inflations are getting higher and higher, unemployment rates are increasing ever so fast. Governments are hesitating on make decisions because of political chaos and countries such as Italy and Spain are in great recession. People do not feel “[confident]” enough to even money to spend and business are not growing. Economists predict that this year “euro zone will remain in recession this year”. Maybe as a capitalist system might have prevented this crisis as suggested in the article, but capitalism also has it flaws.