Specialists believe that Europe is mired in a deep debt trap as a result of the costly measures taken to deal with the financial and economic crisis and they describe the situation as being serious, but not without hope. The majority of the specialists also believe that without the euro, Europe would be in a much worse position. In the fallowing paper, our intention is: first to stress the key factors that have led Europe to the current crisis, second to present some possible scenarios that the crisis may generate in the near future and third to give some viable solutions that might improve Europe’s nowadays economical situation and help it get out of the crisis. That is why our paper covers the matters that implicate the economic crisis in general, which, of course, also depend upon the financial crisis elements. The theme of the paper is extremely important nowadays, especially due to the latest events that took place not only in Europe, but all over the world. In addition to all these important ideas, the research starts with the main factors that have led Europe to the current crisis, and that is because many specialists in the economic and financial field said, at the beginning, that the current situation was caused by the euro and the euro crisis. Other specialists have stated that it wasn’t the euro and it wasn’t a euro crisis that caused the current situation, bringing the arguments that the euro has worked extremely well for twelve years, and more over the last two years, when the huge crisis took place, it even has actually helped protect Europe. This last category of specialists believes that the problem was the financial policy of the countries that have it, because during the crisis most countries responded in a proper and reasonable manner, in cooperation with the European Central Bank and also in an international context, a crisis that did not start in Europe but instead had its origins in America and then came over and engulfed Europe. After that, the research continues with the presentation of some possible scenarios that the crisis may generate in the near future, and that is because our believe is that a proper system for controlling deficits is definitely needed and that should be the lesson that we have to learn from this major economic and financial crisis. *** Professor Ph.D., Academy of Economic Studies, Bucharest, (e-mail: [email protected]). 1118 Challenges of the Knowledge Society. Economy In the end, as a conclusion to all the important ideas presented and debate in our paper, we try to give some viable solutions that might improve Europe’s nowadays economical situation and help it get out of the crisis. Firstly, we believe that was done wrongly five, six or seven years ago needs to be rectified, at any rate, which, of course, means that we need tighter supervision of budgetary policy. Secondly, we need greater oversight by the EU Commission, which was lacking, for example, in the case of Greece. Thirdly, a country that does not abide by the rules should have its voting rights within the European Union withdrawn, particularly in the euro zone, and that is why what would be even more effective is for a country that does not abide by the rules, and fails to stick to the joint recommendations as well as its own stability program, to be denied subsidies from the European fund. All in all, our study was also based on what is the relation between the theme chosen and the already existent specialized literature, and that is the reason why our research will include different views that specialists have expressed in time in the matter of the economic crisis. In the current environment in particular, making that sort of forecast would be especially difficult as the euro exchange rate no longer takes its cue from fundamental data alone, and of course people are worried about the future, and they ask themselves what’s the safest currency to be in. We strongly believe that nowadays environment makes it difficult to arrive at a forecast, not even for us but also even for analysts and economics specialists, but what should be remember as a concrete and clear fact on long term is the fact that fundamental data will play an important role and that as a result the European currency will be in a good position only provided the Europeans stick to all the promises they’ve made. 1. Key factors that have led Europe to the current crisis – a short presentation Our research starts with the main factors that have led Europe to the current crisis, and that is because many specialists in the economic and financial field said, at the beginning, that the current situation was caused by the euro and the euro crisis. Other specialists have stated that it wasn’t the euro and it wasn’t a euro crisis that caused the current situation, bringing the arguments that the euro has worked extremely well for twelve years, and more over the last two years, when the huge crisis took place, it even has actually helped protect Europe. This last category of specialists believes that the problem was the financial policy of the countries that have it, because during the crisis most countries responded in a proper and reasonable manner, in cooperation with the European Central Bank and also in an international context, a crisis that did not start in Europe but instead had it

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