Thesis: First Draft
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The objective of this paper is to examine and analyze the encounters posted to smaller and weaker economies within the European Union, by focusing on Greece’s and Ireland’s experience during the 2009 financial crisis I will try to add more to the discussion of Croatia’s integrity within the European Union and to address, if Croatia as the newest member of the EU can overcome forthcoming challenges. Much of the recent literate suggest these countries and their relatively small economies are, amongst other reasons, not able to devalue the currency with the intent, to regain economic effectiveness.(Taylor 2011) They are realizing that the Eurozone’s economic assembly might not sufficiently represent their specific economic exposures. Because of this and other deteriorating economic situations in all three countries in 2013, I propose that these states will further degrade or increasingly worsen the union’s specific economic power. This concept is studied in terms of three key issues. Firstly, we will study and analyze specific conditions that lead to one of the most impactful financial struggles, both in Greece and Ireland. Secondly, we will examine the challenges and outcomes of bailouts and austerity measures, imposed by the EU as an action of taking the crisis under control. And finally, by drawing fundamental conclusion from Croatia’s current and past economic conditions we will elucidate why the European Union cannot afford the risk of having one more member state added to the already crushed monetary union.
The paper is divided into several sections, an introduction, a section devoted to Greece, a section devoted to Ireland, and chaper dedicated to Croatia and a concluding section. Sections 2 and 3 are there to discuss the past, present, and future economic conditions for both countries and their integration to the European Union. The chapters examine the origins and causes of the crisis, while also analyzing specific policies which are imposed as a measure to decrease national debt and rebuilding economic competitiveness. The key objectives deliberated in the first two sections of the paper are; how the debt crisis started, what internal conditions fueled the flames of the crisis, and the backward firing terms of the EU/IMF bailouts each state ultimately received. It is vital to understand that these countries have major differences in how they were affected by the crisis, while the organization of each section is similar, matters dealing with the recession will differ. For instance, Croatia was influenced by the austerity measures two years after the first policies in Ireland were undertaken and because of that we will find less reliable information on Croatia’s financial crisis. The chapter on Croatia is significant in the way that it takes previous analysis in order to study Croatia’s ability to cope with the Greek and Irish experience. It also examines problems that Croatia was facing during the process of becoming a member of the EU. The final chapter places the analogies of this study back into the big picture. What is happening in Greece and Ireland, and what can we say about Croatia’s integrity to the eurozone? Are Greek and Irish economies degrading the boundaries of the EU? If so, how can we answer the question whether Croatia should or should not join the EU monetary policy? Chapter I: Key Issues
The European Union is perhaps the most striving effort for a supranational organization in history. The idea behind this union was that competing countries can develop by combining some sovereignty together instead to fighting each other” (The Economist). As the idea advanced, it became clear to the members that political union should be the definitive goal in the pursuit for both political and economic stability. The term union became an ever-growing process...