The Criticisms Of The Eurozone

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The criticisms of the Eurozone keeps on rising from many people living in the region, as we can see early on this year Britain has voted for the Brexit. That leaves many people surprised, as well as leaving the economic stability volatile; the euro currency has been fluctuating in such a wide magnitude. Recently, the Italian Prime Minister Matteo Renzi resigned after the failure to persuade the country to come into constitutional reformation to leave the EU. That leaves many people ambivalent whether or not euro was a mistake. The reunification of East and West Germany after the fall of Berlin Wall; this great occurrence in history did not come without trade-off since the economy of East Germany was not at a sufficient point compared to the West side. Unfortunately, the request to revaluate the currency from Germany was denied by France and the United Kingdom. It would increase consumption in the country, which would give rise to the output and let the economy correct on its’ own course. That would also reduce net export, so that the country could use the national resources, and all the local products to put the country back to its’ feet; simultaneously, that would also decrease the unemployment rate as everyone would be going to work. This did not happen, thus Germany real wage fell from 1990 to 2008 without the revaluation of the national currency. The high unemployment in the East reduced the wage; consequentially export increased, which also contributed to the national
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