The last main issue is that the EMU cannot transfer funds or adjust taxes from one region to another. This means that the young people are not able to find jobs in their own country and they start migrating to other countries.
The EU is not able to beat the US in any relevant fields, which leads to structural level problems, and smaller competitiveness compared to the US and the rest of the world economy.
This of course would also require that the EU would get more funding from the members, and this is unlikely in the foreseeable future Knipton, This is weakening the Euro Zone, because the Economic and Monetary Union cannot affect the local fiscal policies.
To balance out these problems and to become similar to the US, the EU needs to remove language and cultural barriers throughout the Union.
To stop this, the European Union needs to deal with structural reforms, because this problem cannot be solved by just policy changes, it needs real changes and real solutions for the problems of the European Union.
The rising problem of unemployment is also linked to both reasons. Essay UK - http: The Euro zone is supposed to create a common interest rate, however we see something else. Search our thousands of essays: A similar, federal-local system similar to the US could solve funding issues in EU projects; as regions would be able to use their funding for the smaller issues, while the higher level could concentrate on European cohesion.
In the case of Greece, they benefitted from the low bond yields, because the Euro zone was backing up the Greek debt. There is no lender of last resort yet, because the European Central Bank will not buy bonds from countries which have short term liquidity problems. The specialists argue that countries which are member of the Euro Zone, tend to fall into a sense of security and they think that they are safe from the currency crisis.
This sense that for security can be a quite dangerous one, because countries and the local governments are delaying the structural changes and fiscal responsibility. The crisis made the poor poorer, and it also started to destroy the middle class as well.
The number of people dependent on welfare is growing in the most powerful economies of EU as well. If it was not for the food aids, these people would either starve or would be homeless.
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It also need to make the wages much more responsive to price and inflation fluctuations. In Germany and France there are more and more people who are unable to afford food and rent at the same time. These people are not only in the peripheral countries, with weaker economy.
However there are other factors as well, which can be equally if not more dangerous. Because of this, they delayed the structural reforms and this lead to a dangerous situation, where even the complete bankruptcy of Greece was imaginable El-Elrian, Another setback is that these national authorities can and already have acted without regards to the common hazards and they already collected high national deficits Pettinger, One of the main problems is that there is no Europe-wide fiscal authority.
Even years after the financial crisis, there are millions of people falling under the poverty and staying there for indefinable time Machaus, According to the Red Cross, there are around German citizens, who are in this situation and the number is still growing Machaus, Conclusion The problems of the European Union can come from several reasons.
There are UK writers just like me on hand, waiting to help you. The migrated workers are already causing problems, and it would only deteriorate; with a mass of peripheral Europeans migrating to the centre Pipes, The fiscal policy is limited.The European Monetary Union (EMU) - The Euro as a Single Currency Words | 7 Pages Customs duties between European countries started to come down steadily in the early s and were abolished in with the introduction of a customs union and the implementation of the common external tariff.
Inthe Euro (European Currency) was introduced in 11 countries for commercial and financial transactions only, notes and coins would come later. The Euro countries were Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland (Greece later incorporated the Euro in ).
The problems of the European Union can come from several reasons. The first is the Great Recession, which hit the Euro zone and crippled the economy. However there are other factors as well, which can be equally if not more dangerous.
The European Monetary Union (EMU) - The Euro as a Single Currency Liberalizing trade is nothing new to the world, but we have never witnessed such a vast economic integration between sovereign countries like the integration carried out in.
The European Monetary Union (EMU) serves as an economic necessity, a complement to the European single market, which is the free movement of people, goods, services, and capital within the European Union (EU).
The Euro, a single currency created under ideals of the Maastricht Treaty, will strengthen. The European Union (EU) is an economic and political partnership of 27 nations with a citizenship base of million persons. The EU functions through three bodies.Download