In Order To Begin To Grasp And Analyze The Roots Of The

(2) European nations began to form economic organizations (e.g. OEEC, EFTA, EEC) to promote economic co-operation & growth.

The European Economic Community was an organization started in 1957 by France, West Germany, the Netherlands, Belgium, Italy, and Luxembourg, in post War World II torn European. This organization was a union between the Steal and Coal Community and The European Atomic Energy Community. The goal of the organization, heavily influenced by John Monnet one of its founders and National Liberation Committee member at the time, was to build a stronger cohesive Europe through collaboration and economic ties to bring mutual prosperity. This organization and its ideals developed into the well know European Union of today, that currently sits with 28 members. However, one controversial possible membership has increased in importance over the years.

A country who’s economy was devastated by the monetary exports demanded of them by the second world war, Greece has shown great financial fluctuation and vulnerability within the last 80 years, resulting in one of the most disputed economic records in the history of the European Union. Dubbed the ‘Greek Economic Miracle’, Greece showed great resilience throughout the 1950’s and 1960’s, with credit to their superior food trade and shipping industry, continuing to produce high levels of economic growth in contrast to others that had also been affected by the war. With the Treaty of Accession (1979) entering into force on 1st January 1981, Greek’s commitment to the European Communities (European Union) proved pivotal regarding it’s controversial qualification into the Eurozone in 2000. Owing to this, in an attempt to recover the unstable foundations of its economy, Greece has since been subject to various regulations and measures of austerity, leaving what was once a highly commended country both financially and socially, in a deplorable state of desperation.

The end of WW2 resulted in the creation of an intergovernmental organization The United Nation, promoting Peace and Human Rights. In 1946, the British Prime Minister Winston Churchill announced ‘we must build a kind of United States of Europe’. Those actions undoubtedly sparked a new sense of enthusiasm across Europe and demonstrates Britain 's influence on the community. In 1948 Britain,France,Belgium, the Netherlands and Luxembourg creating a unified defence alliance after signing the Brussels Treaty and the UN adopted the Universal Declaration of Human Rights. An unclear soviet strategy boosted the desire to strengthen military alliances and led towards the establishment of the North Atlantic Treaty Organisation in 1949 The Council of Europe, was founded in 1949 to provide advice and promote legal standards, human rights, democratic development, the rule of law and cultural co-operation. Influenced by the UDHR the CoE drafted the European Convention on Human Rights in 1950 and advised on the creation of the European Court of Human Rights. The Treaty of Rome in 1957 established the European Economic

This story is enlightening due to a clear overview of how a single currency with the ultimate goal of union and growth results idealistic as differences, not only regarding cultural and social backgrounds but also political ones, makes it very difficult for the Eurozone as a whole to have the same objectives and interests.

In 1992, twelve countries came together and signed the Maastricht Treaty creating the European Union (Krajewska, 2014, pp. 6-25). The last obstacle that the EU had to face was the different currencies of each country, therefore a decade later on January 1, 1999 the Euro was created. Many countries that adopted the new currency fell within the Euro Area. Each country had to discontinue their old currency and the monetary policies giving control the newly formed European Central Bank (ECB), but each separate country still had their own fiscal policies one of the key reasons for the current debt crisis (Krajewska, 2014, pp. 6-25). The union of multiple countries into a central body seemed to be a wise choice for greater economic growth, but the failure from one country is a failure for all.

To Greece, the potential idea of entering the Eurozone was one that was too tempting. A key benefit would be the reduction of inflation rates in the short term. “By joining a monetary union with a credible anchor country or set of countries, a client country eliminates the inflation bias arising from time inconsistency in monetary policy” (Alesina & Barro, 2002). The inflation rate falls to that of the lowest member nation - representative of the credibility and reputation of the German banks and the entire OCA. Hence, a country such as Greece, which lacked the regulation and financial supervision, jumped at the opportunity of sharing the same credible status Germany worked hard to maintain.

In recent history, following World War II, the Paris Peace Treaty and The Potsdam Agreement, reorganized Europe’s countries dramatically and by the late 1940’s the idea of a European Union was presented. It began as a way to preserve peace among the nations of Europe. In 1951, the first

When the Eurozone was founded on January 1, 1999, it was with the intention of further integrating and strengthening the nations of Europe, both economically and politically. Until recently, it was believed that the euro provided a stable currency with low inflation and low interest rates and encouraged sound public finance. That the use of a single currency increases price transparency, eliminates currency exchange costs, oils the wheels of the European economy, facilitates international trade, and gives the European Union a more powerful voice in the world. That the size and strength Eurozone would better protect it from external economic shocks, and provide the EU’s citizens a tangible symbol of their European identity, of which they can be increasingly proud as the euro area expands and multiplies these benefits for its existing and future members (European Commission).

The treaty of Rome stated the establishment of the EEC as an economic union, which provided free flow of investments, trade of goods, common agricultural policy and common EEC customs. But it included some social aspects as providing common transportation

Due to success of the ECSC, the six member countries decided to extend their unity and as a result, two new treaties were signed in 1957. The first treaty was signed in Rome and it established the European Economic Community (EEC) aiming to form a custom economy within the countries (Wild, 2017). The second treaty was European Atomic Energy Community and it was aimed for developing nuclear energy as a corporation.

Europe may not have the luxury of experimenting for many years before finding workable arrangements for modern economies, and of politics in the independent democracies that comprise the eurozone. Popular calls for public goods, social insurance, financial stability, and countercyclical macroeconomic policy cannot be brushed aside so easily as in the less-democratic era of the nineteenth-century classical gold standard. Furthermore, the fact that the score of the eurozone is so poor on optimal currency area grounds that it suggests a need for mechanisms allowing smoother and more symmetric adjustment between its member countries.

The European Economic grew bigger with up to 31 countries joining the ECA having limited rights for each country. The treaty had plans on building a common market in 1957 this came into reality in 1958 with the creation of a customs union along with the Single European Act (SEA) in 1957. ‘They declared in its preamble that signatory state was determined to lay the foundations of an ever closer union among the peoples of Europe’. This confirmed a political objective of a progressive political interrogation from the member of states.

The European Union of today was established in 1990, but dates back to 1952, with the start of the European Coal and Steal Community. This original community was made up of six countries: Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. Their focus by joining together was to keep economic independence and peace after the end of World War II. They hoped to sustain close relationships across borders to keep the individual states from turning against each other. By 1963, the countries had signed policies standardizing food and crop prices within the Union. They also agreed upon providing nations in Africa with aid to create quicker development of partnerships. Years later the Treaty of Rome

Actually, since the late 1960s, the three original EU institutions have shared a common organization and have enlarged the EU’s mission as they came to be called “the European Community.” (Kegley, 2009) Based on this large community, the other more European countries joined in this supranational organization in order to earn financial development under sharing common interests. From that time, the membership of the European Union grew and its geographical scope broadened either that it aggrandized more 15 countries by 1997. According to Dunford and Perrons (1994), the mechanisms of