Greek Crisis

Topics: Euro, Europe, Greece Pages: 3 (1094 words) Published: February 18, 2013
Greek Crisis
In the late 90’s a prestigious and exclusive club of the Euro was introduced to Europe; however, countries were able to join this club unjustly (Currency History). The idea of the Euro was to have a stable currency in which all of Europe would be able to use. Germany and France were the innovators behind the plan of the Euro; Germany favored the fact that it would have a sort of alliance with other countries, and France was ecstatic to have the financial security of another country (Ibid). The driving aim behind the Euro was to create strength and union between European countries, therefore giving Europe the chance to be able to lead the world financially. A leading advantage that the Euro held was that it would make it difficult for European nations to declare war against each other because it would hurt the whole of the European nation (This American Life). The main requirements for countries to be able to use the Euro were for countries to have a low deficit and avoid inflation at any cost. Poor European countries craved to become part of this “Eurozone” because they had the understanding of the strength behind the Euro (Ibid). The Euro would be able to allow poor and small countries access to larger and more competitive markets. The other benefits of the euro were the elimination of currency fluctuations and cost of transaction throughout certain countries in Europe; the Euro could also potentially heighten trade across borders, which would better the European economy (Greek Debt Crisis). One of the most powerful things that the euro was intended to do was to create creditability, the countries elected were supposed to abide by strict rules, correctly conducting their finances and abide by the low deficit and low inflation laws. The benefits of the Euro enticed European nations; the new currency seemed promising and secure. Countries could not risk not being a part of the break-through; this new unified currency could potentially...
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