The European debt crisis, it’s the failure of the euro.

The currency that

ties together 18 European countries in an intimate but flood manner. Over
the past 3 years Greece, Portugal, Ireland, Spain, and Italy experience
financial collapses that threaten the entire world. Europe is always a
continent of trade barriers, and doing business across borders is difficult.
When World War II the economy of Europe come into crisis and the fastest
way to rebuild its economy is to remove its barriers, the last barrier that falls
is the Berlin wall. Maastricht treaty is signed and the European Union is
created. Euro is launched on January 1, 1999, and countries adopting Euro
are called the euro area. They discontinued their own currencies and road
monetary policies giving control to ECB. Monetary policy controls the money
supply and fiscal policy controls how much money a government collects,
taxes, and how much it spends. The governments of Greece, Portugal, and
Italy accumulated huge debts, however, they were able to repay these with
borrowed money. This made business incredibly efficient at the same time
tying together the Euro area. Things continued this way until 2008, spurred
by the collapse in the US, the credit crisis swept the globe. This is a problem
for Europe because of the unified monetary policy. Germany, the biggest
and strongest economy, agreed to help bail out the debtor countries, but
only if they agreed to implement strict austerity measures. Austerity means
cutting government spending, it sounds like a simple solution but it’s not.
When the government cuts its spending, it will cut the earnings of its
citizens. And it will not automatically balance the country’s budget,
problems in one country could reverberate across the whole continent. Area
countries must have the power to cut spending, raise taxes, and set laws, a
fiscal union like this can prevent excessive borrowing and spending. The
United States of Europe, without a centralized fiscal union country, will
continue to run deficits and accumulate debts.
 Official members of the European Union are Germany, France, UK,
Italy, Spain, Poland, Romania, Kingdom of the Netherlands, Greece,
Portugal, Czech Republic, Hungary, Sweden, Austria, Bulgaria, Denmark,
Slovakia, Finland, Ireland, Croatia, Lithuania, Latvia, Slovenia, Estoria,
Cyprus, and Malta. Countries pay for membership, countries vote on laws,
and 3rd is the citizen of the countries are EU citizens as well. EU gives you
options, in exchange for the freedom of movements people need to pay
membership fees to EU though they aren’t part of it. EU has its own
currency, the Euro used by majority but not all the EU members. This is
called eurozone, four tiny European countries are Andorra, San Marino,
Monaco, and Vatican City have the right to print euros and use their money
despite not being in the EU at all. It makes all the rules, euro zoned were
inside of it with a common currency, European Economic area outside of it
because people can move freely.