will the euro survive
Global Marketing
Will the euro survive ? (case 3-1)
1)
Grece, Ireland, Italy, Portugal and Spain are sometimes referred to as the euro zone’s « peripheral countries » because they meet major economic difficulties. For example, these countries rank lower than their EU neighbors in terms of infrastructure, business sophistication, macroeconomic environment ...
Therefore, these countries are called « peripheral countries » because they are considered the weakest of the euro zone as opposed to the most creditworthy countries, those of the core.
The euro area currently operates at two speeds, with one side of the « core countries » and the other « peripheral countries ».
The euro zone fears about the solvency of « peripheral countries » and their inability to stabilize the debt / GDP ratio. That is why they are considered so.
2)
European Commission sets up actions to bail out the Irish and Greek banks for several reasons.
Firstly, if it is not done, these countries in situation of indebtedness will go bankrupt. And then, there will be no alternative but to exclude them from the euro zone.
In addition, from the time a country will leave the euro zone, investors and markets will consider that each country that uses the euro is a potential candidate for the exit. This will create a climate of uncertainty and mistrust. A monetary union does not fray, it collapses. This is not a club or we go and we come out as in a mill. This is a serious commitment that is irreversible unless the country totally collapses.
All the political leaders of the euro area are all agreed on one point at least, is that they do not want to hear about an exclusion and that everything must be done to avoid such a scenario.
Finally, we must take into account the efforts that have already been provided by these countries in economic difficulty. A country like Greece has already implemented drastic measures to try to remedy the situation. For example 75% of the banks have
Will the euro survive ? (case 3-1)
1)
Grece, Ireland, Italy, Portugal and Spain are sometimes referred to as the euro zone’s « peripheral countries » because they meet major economic difficulties. For example, these countries rank lower than their EU neighbors in terms of infrastructure, business sophistication, macroeconomic environment ...
Therefore, these countries are called « peripheral countries » because they are considered the weakest of the euro zone as opposed to the most creditworthy countries, those of the core.
The euro area currently operates at two speeds, with one side of the « core countries » and the other « peripheral countries ».
The euro zone fears about the solvency of « peripheral countries » and their inability to stabilize the debt / GDP ratio. That is why they are considered so.
2)
European Commission sets up actions to bail out the Irish and Greek banks for several reasons.
Firstly, if it is not done, these countries in situation of indebtedness will go bankrupt. And then, there will be no alternative but to exclude them from the euro zone.
In addition, from the time a country will leave the euro zone, investors and markets will consider that each country that uses the euro is a potential candidate for the exit. This will create a climate of uncertainty and mistrust. A monetary union does not fray, it collapses. This is not a club or we go and we come out as in a mill. This is a serious commitment that is irreversible unless the country totally collapses.
All the political leaders of the euro area are all agreed on one point at least, is that they do not want to hear about an exclusion and that everything must be done to avoid such a scenario.
Finally, we must take into account the efforts that have already been provided by these countries in economic difficulty. A country like Greece has already implemented drastic measures to try to remedy the situation. For example 75% of the banks have