The Challenges Of Joining The European Union In Europe

The European Union (EU) is a unique economic and political partnership between 28 different countries. It consists of about half a billion citizens, and its combined economy represents about 20 percent of the world’s total economy (Briney, 2015). Today The European Union works as a single market, with free movement of people, goods and services from one country to another. There is a standard system of laws to be followed, and since 1999 many countries share a single currency called the Euro (Europa.eu, 2015). This essay will explore the background history of the European Union and the benefits and drawbacks of the European Union.

Portugal’s population is 10.7 million. Their unemployment rate is currently at 15.9%. Portugal is currently in a deep recession. In May 2011, Portugal accepted a €78billion (euro), $103billion (dollar), united European Union-International Monetary Fund plan. Portugal’s

In its historical context discuss why and how the EU was set up and the advantages and disadvantages of membership.

By the end of 2008, the European Union began experiencing rippling effects of the United States financial crisis. Several member countries, most notably on the southern end of the continent, faced high levels of debt and unemployment. Portugal, Iceland, Ireland, Greece, and Spain, derogatively referred to as “PIIGS,” required extensive economic support from the EU in order to repay government debts and bail-out private banks. Disbursal of aid in 2010 proved successful in promoting economic recovery in some countries; however, the vast majority observed only slight economic improvement which led to doubts regarding the effectiveness of the harsh austerity measures implemented. Ireland has most clearly benefited from the financial support of the European Union as the country’s unemployment rate has dropped below ten percent and is expected to witness 4.5% GDP growth in 2016. Portugal, on the other hand, shows little fiscal improvement as evident in an unemployment rate of 13% and an expected GDP growth of only 1.6% in 2016. Although both countries faced tough financial crises in 2010, Ireland has notably outperformed Portugal in resolving the situation. The weak economy in Portugal, as well as continued fiscal hardship in the remaining “PIGS” countries, threaten the preservation of the European Union as financial inequality between the members persists.

The EU has become more economically integrated by becoming a common market. This removes barriers to production, like capital and labor.

The crisis let Greece fall into an economy downturn and this initiated a series of matter for their economic status. In the paper, we can see how the crisis affects health in Greece. We also look how government reduce expense could affect the country, including healthcare and public servant. We also discuss on the income of Greece citizen after hit by debt crisis. Government has a series of policy in saving the country economic downturn to mitigate debt crisis. Greece government has applied austerity measure in order to obtain rescue package as financial assistance for the bank bailout and maturing debt. Greece also needs to increase their competitiveness in order to obtain more revenue and increase their GDP. There also suggestion for Greece to leave Eurozone and we will discuss about the advantages and disadvantages on it. Last but not least, we deliberate on issuing warrant linked with GDP which done by Argentina in 2005 during their crisis. However, the situation in Greece has not improved much up to expected level. There is a lot critique on Greece government slow reaction and insufficient effort dealing with the crisis.

Crises are unavoidable phenomenon that appear at a certain time in different regions. These might affect a country 's economy quite devastatingly, or might disappear rapidly without serious outcomes. Spain, in 2008 was highly affected by a crisis that lasted for several years, changing the economy of the country significantly. At the point when the worldwide emergency struck in 2008, Spain was going by the Socialist legislature of Prime Minister José Luis Rodríguez Zapatero. Not at all like Greece, it was not an incessant over-high-roller. Its obligation was simply 36% of its GDP in 2007, about a large portion of the obligation weight of the U.S. furthermore Germany at the time. The Socialist Party wasn 't loaded with bank industry shills, or submissive admirers of voracious private enterprise, yet their response to the emergency crushed their own particular constituents generally as Spain 's decades-long financial model was impending fixed. There are lessons for Americans in understanding what happened to Spain.

One cannot understand the Greek Financial Crises and the general European Financial Crises without understanding the history of the European Union, the creation of the euro, and the Eurozone. The countries involved in the European Financial Crises were Spain, Portugal, Iceland, Ireland and Greece. The Maastricht Treaty created the European Union in 1993. The treaty gave citizenship to all people living in the 28 member countries. This treaty led to the creation of the Euro. In order to join the Eurozone, each member country must maintain sound fiscal policies. Essentially, each country must limit national debt to 60% of gross domestic product and limit annual budget deficits to a maximum of 3% of GDP. The main reason for the greater European Financial Crises and Greece 's crises was the country 's violated the treaty restrictions. Spain, Portugal, Iceland, Ireland and Greece were unable to maintain spending within these limits. Additionally, the European Union has a monetary union but does not have a fiscal union. Each member country maintains its own independent tax and spending policies. The absence of a common fiscal tax for every member country in the EU is the reason for the current crises.

The European debt crisis was a financial phenomenon that affected multiple countries around the world and the shockwave almost collapse the global market. One of the countries that were greatly impacted by the crisis was Spain. Some of the implications of the event caused unemployment to skyrocket, debating the role of the European Union and the state Catalonia is seeking their independence. Ultimately, the Euro Crisis showed the weakness of the European Union and debate if it would last into the future.

Excessive government debts were the cause of the Euro crisis due to countries ‘living beyond their means’ according to the Germany’s ministry of finance. These increased debt levels were largely caused by huge bailout packages provided to the financial sector during the 2009 financial crisis and the global economic slowdown thereafter. The average public deficit in the Eurozone was only 0.7 percent of GDP in 2007 but by 2010, it had jumped to over 6 percent. The Eurozone’s public debt also rose from 66 to 85 percent of GDP in 2010.

The terrible internal economies control. The countries in euro area, especially Portugal, Ireland, Italy, Greece, and Spain lost their control over the domestic financial situation. Specifically, Greece had long standing financial problems. The government spent largely on the social welfare, and had a great number of public servants who had extremely generous wage and pension benefits. Besides, the government had little control over its budget deficit, leading a long standing financial budget overrun. In Ireland, the estate bubble greatly destroyed government tax income and consumption power of public. Portugal’s lasting recruitment policies led to a great number of redundant public servants. The Italian economy suffered from the high unemployment rate and high tax rate, and had a slow growth in recent years.

Spain is one of the powerful state with an expanssion economy in EU from 1995. His GDP was growing year by year without any problem , but in 2007 the economy of Spain start to fall down, because of a collapse in Housing Market, that can lead to a recession or a slowdown.

What is the European Debt Crisis? The European Debt Crisis is the failure of the Euro, a currency that ties seventeen European countries together. In this paper, I will be describing the cause and effect of the debt crisis along with what would happen if the European Union stayed with the economy they have. Then what I believe is the best solution to fixing the debt crisis.

Brexiters are desperate and angry with everything and everyone that suggests that the British people should vote to remain in the European Union in the 23 June 2016 referendum. The recent victim of their desperation and ire has been no less a personage than the US President Barrack Obama himself.

The European Union is a political community constituted as an international organization whose aim is to promote integration and a common government of the European people and countries. According to the Article 3 of the European Union Treaty, Union’s aim is to promote peace, its values and the well-being of its peoples. It is based on the values of freedom, democracy, equality, law enforcement and respect for human rights and dignity.