World War II : A Nation Of Devastation

1260 WordsMar 24, 20176 Pages
Throughout European history, intracontinental business was very difficult to conduct between European countries. Generally, Europe was a continent set against itself, with many of its countries battling each other throughout history. As a rule, countries at war with each other do not trade with each other at a very high rate… On top of that, there were a large variety of currencies throughout Europe. Thus, in order to trade, there were complicated exchange processes, in which countries would have to pay a fee to exchange their currencies, and then they would also have to pay a tariff fee to do business with the other countries (“The European Debt Crisis Visualized”). To make matters worse, World War II left the majority of Europe in a…show more content…
This credit was available until 2008, when the U.S. housing market crashed, and the global economy tightened up everywhere (“The European Debt Crisis Visualized”). Greece suffered terribly from this because their economy relied on borrowing and deficit spending. Without being able to borrow that money, not only their economy, but all of Europe’s economy suffered. Before the crisis, in order to be a part of the Eurozone, countries had to have budget deficits less than 3% of their GDP, national debt less than 60% of their GDP, and inflation rates within 1.5-2% of the economy with the lowest inflation rate in the Eurozone. However, these were not strictly enforced, obviously, as Greece got away with it in extreme measures with no penalty. According to Michael W. Bauer and Stefan Becker, due to the crisis, “there have been crucial changes to all procedures that steer national economic and fiscal policies,” and, “it improves the stringency of EU economic policy-making, providing clear timelines and combining ‘hard’ and ‘soft’ measures” (219). In theory, this should significantly improve the system, as the crisis likely never would have happened if the Eurozone qualifications had been strictly enforced. Another key factor in the development of the European Financial Crisis was the cultural geography of Europe. Generally, Germans are very hard workers, receive very little in pension during retirement (which tends to occur at a reasonable age), and pay their

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