Euro-Debt Crisis and the European Union Essay Example | Topics and Well Written Essays - 500 words

Euro-Debt Crisis and the European Union - Essay ExampleRather than specifically call out both of the EU member states, Christine Lagarde calls on the ECB to fully commit reserve funding to deploy bailouts.The problem with this bad-tempered viewpoint is that the European Union is becoming more and more entwined with the internal political and economic despondency that is exhibited among the weakest links within the Unions membership. Although attempting to save the European Union has been a central beginning of the combined efforts of the worlds most influential financial body (the IMF), these efforts have dragged on and on and look increasingly unlikely to avert a crisis and/or disaster that is already unfolding earlier the eyes of the viewer (Wall Street Journal 1). The situation with Greece is but one example. Although the article in promontory deals mostly with the IMFs implied directions regarding Spanish liquidity, this is just another example of the debt contagion that th reatens to envelop the economies Greece, Spain, Italy, Portugal, and Ireland (PIIGS).In the article, Lagarde goes on to implore the domestic/state actors of the respective economies to fully cooperate with all haste and cooperation with the efforts of the European cardinal Bank. One interesting component of this advice is the fact that many of these state actors are playing a real tenuous balancing game. This balancing game is accented by attempting to employ the rigid austerity measures that the ECB requires in order for the disbursal of any further monetary aid/loans/bailout package, the fear that the European Union allow eventually collapse and the consequential reaction to withhold resources in order to prepare for a worst-case scenario forcible exit from the Eurozone. It is for precisely this reason that Christine Lagarde is so adamant that each of these nations commits themselves fully to the proposition of saving the Euro.