Search This Blog

Monday, September 5, 2011

Part 2 of Eurozone Crisis


Since the beginning of Euro crisis,politically, the role of European commission has been minimal and big guns (i.e. Germany and France) have controlled the overall direction of talks. France is at a relatively larger risk in terms of financial stability. It is possible that it may lose its competitive advantage with the further spread of crisis, and thus pass on all the controlling knobs in the hands of Germany.
Other smaller countries which have intertwined themselves in debt traps, will find it difficult to match the level of these nations. This may give rise to further austerity measures, spending cuts and further introvert behaviour at economical as well as political level. This spread of Euro crisis within Europe can also result in smaller nations turning their backs on Euro, as scares will spread in already fragile economies.
European countries may also lose their frontrunner tag on global scenario, especially when it comes to participating in the global systems for the purposes of global welfare as well as defence schemes such as NATO operations. If their influence and participation is reduced in such operations, it will be difficult for them to maintain their political superiority on a global level.
If EU is to survive in the global political systems of nations, a strong Euro commission is a must. EU must promote joint decision-making, and should not allow concentration of power in single hand.
Stronger coalition and inclusive nature of commission will ensure quicker and stern actions. Disparities which exist in EU members, on the economic and political front, should not be directly translated into the proportionate dominance at commission.

No comments:

Post a Comment