Economically, the last 6 or so years have been nothing short of dismal for the European Union and its members. Due to the diversity among its members own national economic policies, the European Union’s economic configuration and its single currency were shown to be somewhat incoherent. The European Union’s gross domestic product only grew a measly one percent in 2013, compared to the United States’ 2.2 percent growth. In December 2014, unemployment among member nations of the European Union hovered around 11.4 percent, while the United States unemployment rate held at around 5.6 percent. Even though in the U.S. we are ever
The result of this exchange can be seen in how the German economy hegemonically supports many other states within the union. Ironically, Europe has always been the center of hegemonic power since the colonial era, which in turn led to national uprisings across their spheres of influence (Spiegel, Matthews, Taw, & Williams, 2015). Since the end of the economic downturn, Germany has been unwilling to support the idea of simply bailing out nations such as Greece, opting instead for a form of structural adjustment programme (SAP) to be imposed on the nation (Irwin, 2015). Placing such a policy on a nation only results in the nation never being able to fully achieve sovereignty; supranational bodies such as the IMF imposed such programmes on nations in Africa in the past, and these programmes have merely created more issues to resolve (Mkandawire, 2014). SAPs polarization of economics is a major contributor to the prolonging of the European debt crisis, and has been a contributor to the skewing of global politics in favour of the powerful.
It is hard to believe that a war-torn country such as Germany can flourish into Europe’s largest economy. What is even harder to believe is that it had achieved this feat in a significantly shorter time than other European nations. Germany had experienced devastating losses in both World War 1 and World War 2. The combinational blows of Germany’s countless number of war casualties, the irrational reparation payments and the following hyperinflation had crippled the German industry. Despite this, German industry had managed to miraculously emerge at the top of the European economy. The outcome of war was the key reason why Germany is as economically prosperous as it is today
The article “How Germany Prevailed in the Greek Bailout” discusses Germany’s successes financially in comparison to most other (19 countries) in Europe. Although Germany has such success others see the country as a bully almost due to their militaristic background even though they have come to the aid of Greece and helped. Many other European countries are hesitant about Greece receiving aid considering the countries past failures financially. This is not the first time the country has been in debt and undoubtedly will not be the last. Since the economy fell in 2008 Greece’s unemployment rate is about 22% which is double the U.S. Due to an imbalance in European countries where some are creditors and others debtors it is difficult to fix this
Germany is one of Europe’s industrial powerhouse and the world’s second largest exporter. The country whose economy has single-handedly stopped the eurozone falling back into recession and the only nation rich enough to save the
Germany is Europe’s largest economy and is a significant member of the continent's economic, political, and defense organizations. Functioning with a mixed economy, Germany has one of the highest nominal and real Gross Domestic Products. Although the economy is doing well, Germany has also been continuously struggling with high levels of unemployment since 1989.
The Golden Age of Greece is well known for its sculptures, buildings, rulers, and philosophies. Today, modern Greece is known for having economic crisis's as well as political turmoils. Greece's problems began when they joined the European Union. Greek drachma was officially replaced by the euro when they joined. Greece approved the euro in 2001, not knowing what they were getting in to. When the Prime Minister Konstantinos Karamanlis came to power he realized that the budget deficit was not 1.5%, but 8.3%. That outstanding amount greatly hurt the economy. By 2008, Greece's tax collection crumpled and unemployment was at an all time high. Unfortunately, by 2014, 30% of Greek's population did not have a job (Greece Debt Crisis). In contrast, today's Greece is a complete different from the Golden Age. Greek unemployment soared as austerity took its toll.
These policies, coupled with a period of global economic prosperity in the early 2000s, helped make Germany the economic powerhouse of Europe. Today, with Chancellor Angela Merkel (first elected in 2005) Germany remains the economic backbone of the European Union and is a major player internationally as a G7 country and a regular rotating member of the UN Security
The Global Financial Crisis revealed many flaws in the institutional framework of the Eurozone, as well as the flaws in the policies implemented in the aftermath of the revelation of the crisis. One of the major flaws revealed in the institutional arrangement of the Eurozone project, is the clause in the Maastricht Treaty which limits the ceiling on the ratio of the annual government deficit to gross domestic product. As a result of the Global Financial Crisis, The Maastricht Treaty put into place structural impediments that prevented member states from implementing counter-cyclical policies. It is likely that the crisis left a deep and long-lasting effect on economic performance and overall social hardship. Job losses were contained for some
Greece’s unemployment rate has hit another highest record in May 2013, which is 27.6%. Greece continues to suffer jobless labour market from the deep recession. Among all the labour force aged 16-24, the rate is 64.9% as the Greece sees the sixth year of recession. Jobs of any kind are scarce in today’s Greece. Deep recession have swept away a quarter of the Greece’s GDP. Greece, the country of 11 million people has lost more than a million jobs as business shut down or lay off staff.
The economic crisis of 2008 in New York had ripple effects around the world, causing deep structural problems within the European Union to crumble the economies of several countries. These countries, known as the PIGS, are made up of Portugal, Ireland, Greece, and Spain, and collectively hold most of the sovereign debt problems of the European Union. After fast growth early in the decade, these countries were spending too much money and not securing their own banking sectors with enough capital. Soon, the debt the PIGS owed caused massive problems throughout the EU, and Germany and France had to come to the rescue of these poorly managed countries. (Greek Crisis Timeline, 1) Now, in 2012, the issue has yet to be fully resolved. Greece is still sinking, and a massive bailout for Greece's banks is required. The debate is whether Germany should continue bailing out Greece and collecting interest on its loans, or whether Greece should try to separate itself from the broader European Union, in an attempt to manage its own finances and declare bankruptcy in order to save itself from crippling interest payments. Each path offers an escape from the present situation that Greece finds itself in, but only the path of bailout results in a harmonious European Union. If Greece fragments off from the EU, then the entire union is weakened as a result. I believe that Greece should accept the terms of the bailout that Germany has provided, and should undergo several years
The German economy has progressively developed from the effects of the global financial crisis, which had a serious negative impact both on Germany’s public finances and on its economic growth. Actions
When looking at a map of Europe and asked to identify a country with one of the best economically sound counties, many people would say Germany. According to the UK – German connection Voyage, “Germany is a republic with a parliamentary democracy and a bicameral system of government. The Federal Government consists of the Chancellor and his or her ministers who are drawn from the members of the Bundestag. The ministers usually belong to the parties who form the ruling coalition.” Germany is also said to have the largest national economy in Europe. Germany’s economy is also the fourth largest by nominal GDP in the world (EW World Economy Team). As stated by the website German Culture, Germany’s economy is labeled as a Social Market Economy otherwise known in German as the soziale Marktwirtschaft. For years Germany has been seen as one of the leaders of economy in Europe and around the world, but that doesn’t always mean the country is stable. Germany has a long and treacherous history of being labeled “unstable.”. From the time Hitler dominated Germany in 1933 to the time of the Berlin Wall in 1961 Germany has struggled in the past with their own people and their economy. However, if a person would look at Germany’s economy today they would find a very different picture. According to Make it in Germany, Germany has been a stable democracy for the past
So how did things finally turn around for the German people? After a small period of hardship, the Western half of Europe saw their situation start to improve. After the United States’ decision to sign the Marshall Plan, Western European economies saw noticeable improvements in their economic standings. The plan aimed to not only convince recipient countries to stay away from communism by giving them large amounts of financial aid, but also to help modernize their countries in an economic sense. The plan gave countries the opportunity to rebuild industries and physical assets such as factories that were destroyed during the second world war, and it also helped remove trade barriers between recipient nations. After the implementation of this plan, the West German economy ended up being led by a man known as Ludwig Erhard. As stated in a biography of him in the Britannica, “Erhard was commissioned to continue his policies of reconstruction. In the following years he applied his “social market system” to the problems of economic renewal with phenomenal results, achieving what has often been called the German “economic miracle”
Germany is seen as the economic leader of the 17-nation eurozone. Berlin has had a considerably better public debt and fiscal deficit relative to the gross domestic product (GDP) of the most affected eurozone members. The Chancellor of Germany, Angela Merkel, insisted on ‘austerity’ by the affected states, especially worst-case Greece, rather than ‘bailout’ with external help. Thus, resulting in a polarized euro-opinion divided between the ‘austerity’ school and the more populist ‘growth’/bailout school. Germany’s action will be key to both the eurozone’s and the euro’s survival. She [Angela Merkel] rejected renegotiations of a fiscal pact on Europe’s belt-tightening, yet seemed open to talks on growth in a CNBC interview. She said,