The European Union And The Euro Crisis

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When the European Union was established in 1993, its goal was to create a common currency in Europe, called the euro (“Eurozone”). This goal was achieved in 1999, and the euro is now used by 17 European Union countries, including Greece (“EUR”). Greece adopted the euro in 2001, and their economy has been struggling ever since. Since joining the European Union, Greece has struggled economically, politically, and might continue to struggle in the future. When the European Union was “founded with the signing of the Maastricht Treaty in 1992,” it included many of the countries that were a part of the previous European Community, including Greece (Prono). The European Union was formed to create “economic and political integration between an ever-growing group of European countries” (Prono). When the euro was introduced in 2002, Greece adopted it, and “was one of the poorer European countries to do so” (“European”). This led to bond traders by buying Greece’s debt, “believing that the Greek economy had been bolstered by Greece’s adoption” of the Euro (“European”). After “the U.S. investment bank Lehman Brothers went bankrupt” in 2008, a financial crisis began that eventually spread to Europe (“European”). After the financial crisis spread to Europe, the Prime Minister of Greece, George Papandreou “announced that the nation’s budget deficit was actually twice what had previously been reported” (“European”). This led to many banks and and other financial entities not allowing
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