According to the recent reaserch that what seemed impossible, now could become a serious threat. In my opinion problems, which countries have with Euro currency have started earlier but the dominating and the winning stroke was the situation in Greece.
The preparation of the aid program to Greece in the short term has helped to reassure investors, but will have much more serious consequences in the long run. In 2011 financial needs of individual members the Euro area will be record high. France and Germany are one of the countries which pretending to have the biggest deficit in amounts . With reference to GDP the biggest debtors will be Spain and Ireland. It seems that Germany, France and other Benelux countries pay the bills for extravagant spending “southerners”. But the problems of Greece are just a tip of the iceberg. Economists claim that rapid cuts in expenses and raise taxes are inevitable. It’s hard to believe that Portugal with the total debt of private and public sectors over 300 percent of GDP or Spain with almost a 20 per cent unemployment will fastly manage with that crisis.
Trying to force through most inconvenient reforms for Euro area members like excluding – for transitional period – the country, which breaks terms of the Maastricht Treaty, seems impossible nowadays. What European Union could do to improve situation in union monetary area?