Michael Stepan
Title
Therefore, Europe eventually adopted the Stability and Growth Pact to regulate and monitor the fiscal debts of each country (Beetsna and Uhlig 547). However, there are many uncertainties of a unified economic system. Many believe the Stability and Growth Pact does not fit these concerns, and European Commission President Romano Prodi described it as being “stupid” (Savage and Verdun 843). In this paper, the various problems of a unified monetary will be analyzed to show a need for some regulations, while also revealing the short-comings of the Stability and Growth Pact. The number of countries who made it to stage III and adopted the euro was unprecedented (Heipertz and Verdun 114). On January 1999, now Austria, Belgium, France, Finland, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain all would use the euro over their current form of currency. One can imagine that having such vastly different countries all united under one central bank could have some fundamental problems. The greatest fear of having monetary unification across major countries of Europe is that one country’s actions and problems
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It is significant to note that Europe did not simply scrap the entire Pact – which some argue would have been ideal. Instead the revised pact retained the identical debt ceilings, but made allotments for different circumstances (Savage and Verdun 843). Now the pact would emphasize cyclically adjusted deficit calculations to provide a more accurate indicator of debt (Savage and Verdun 843). In addition, the revision called for a strengthening of the administrative and statistical force of the Commission in order to monitor countries’ deficits better. Finally, the reforms gave additional conditions in which union states could cross the three percent deficit threshold while also increasing the amount of time the country was allotted to begin fixing the
Said in Document B, it shows a graph of Greece, Portugal, Czech Republic, and Hungary. It displays their synthetic GDP and their GDP when they joined the EU. As for all instead of Greece, their money increased, but Greece decreased. Even though joining the EU may be a good advantage for a lot of money, it may be sometimes a bad idea, because, for instance, Greece started off with about 35 trillion dollars for their GDP per capita in 2010, but after they joined, their GDP went lower to 25 trillion dollars (Document B). If you now look at Poland, it’s not a strong country.
In conclusion, the European Union has “merged” the countries of Europe. It has developed a common currency called the Euro’s, and a Parliament located in Belgium, Luxembourg, and France. Also, ALL of the countries of the Union are affected when one country is affected. This is important because the continent of Europe had become very weak after the wars and they needed to strengthen, and the European Union keeps the countries of Europe strong and economically fit.
The North American Free Trade Agreement—NAFTA—was an important agreement signed between three countries—the U.S., Mexico and Canada. NAFTA played an important role between each of these countries’ relations with one another through imports and exports. Throughout the presidential elections throughout the years, NAFTA has been highly debated on whether or not it has helped benefit the economy of these countries or if it has caused a lot detrimental issues. NAFTA promised many benefits for these countries, but not all of their promises were carried through; many views across the political spectrum also have their indifferences about NAFTA.
On January 1st, 1994, a treaty that created the largest free trade area were signed into place by the trilateral of United States, Canada, and Mexico. NAFTA is a promise made by world’s most significant corporations claiming to create many high paying jobs and raise the standard of living in the US, Canada and Mexico. As we approach its 21st birthday, NAFTA now links 450 million people producing trillion dollars’ worth of goods and services each year. However, behind this seemingly good deal, it also created many underlying issues. Beginning with NAFTA giving corporation opportunities to move factories aboard to the lower-cost Mexico. Manufacturing aboard did not only outsourced American jobs, it also caused manufacturers that remained to lower
During the early 1920s, Florida was flourishing economically. Land sales were reaching planetary heights, tourism was booming, and new residents were coming in every day. By September 1926, the population of Dade County and the new City of Miami had blossomed to more than 100,000 and construction was all over. Although Florida was prosperous that was only on the surface, behind the scenes there existed a widespread of poverty. And things got even worst when the 1926 hurricane hit Florida. The hurricane was described by the U.S. Weather Bureau in Miami as "probably the most destructive hurricane ever to strike the United States." Severe flooding and wind damage weakened communities. Lake Okeechobee flooded and drown over 2,000 people in nearby communities. Many buildings that were a work in progress were damaged and discontinued, tourism was at an all-time low, and also many citizens lost their homes. And The Great Depression didn’t make things any easier. Florida was in trouble and in need of help.
Since the early 1930’s, non-whites in America have seen a steady increase in the division of wealth between themselves and their Caucasian counterparts, beginning with President Roosevelt’s New Deal. Franklin D. Roosevelt created many programs to try and grow the American economy, create new jobs, and save the banks. These programs were known as the New Deal. Although most Americans applauded his efforts, the non-white groups in America did not feel the same. The programs that were created by Roosevelt inadvertently disenfranchised the non-whites leaving them with a bitter taste in their mouths for the new America Roosevelt was trying to create. While learning about the economic growth during the New Deal Era and much later, one can see
European Commission. Economic and monetary union and the euro. Publications. Luxembourg: Publication Office of the European Union, 2012. Document.
However, there are many countries that have not yet adopted the Euro and have remained incredulous about it. Two countries that fit into this example are the UK and Denmark. The UK’s reluctances to adopt the Euro has begun with its opt-out of the Maastricht Treaty that was signed in 1992 by all members of the European Community and has led to the creation of euro. Within the Conservative Party John Major, who was at that time the Prime Minister of Great Britain, was considered “pro-Euro”, as he pledged to keep Britain “at the very heart of Europe”. However, as his government was endorsing the Treaty, he was faced with strong antagonism in the House of Commons that consisted mostly of the so-called Maastricht Rebels who were members of his own Conservative Party rather than the Labour opposition. The endorsement was voted down and Major’s authority in Parliamen...
Many people would agree that Europe is a continent in which regions identify with each other even if they are not part of the same country. For that reason, as well as others, in 1957 the Treaty of Rome "declared a common European market as a European objective with the aim of increasing economic prosperity and contributing to 'an ever closer union among the peoples of Europe'" (www.euro.ecb.int). Later, in 1986 and then in 1992, the Single European Act and the Treaty of European Union tried to build on the previous treaty to create a system in Europe in which one currency could eventually be used all over the land under the heading of the Economic and Monetary Union. (www.euro.ecb.int) However, the question remains, why would the leaders of various European nations want to create one currency when the rights of national sovereignty have always been an issue for countries all over the world. Why, in 1998 did they create the European Central Bank, and why in "The third stage of EMU... on 1 January 1999, when the exchange rates of the participating currencies were irrevocably set" (www.euro.ecb.int) did eleven, and later twelve, countries link themselves economically in a way that has never been done before?
To start with, what is the meaning of the Single Market? According to European Commission website, Single Market indicates the EU as one territory that has no internal borders or any other controlling complications that lead to the free movement of booth services and goods (The European Single Market - European Commission, 2017). According to the same source, single market has great benefits. It encourages competition and trade, increases efficiency, promotes quality, as well as helps in cutting the prices. In addition, the same source considers the European Single Market as one of the EU’s ultimate accomplishments that powered the economic growth and made the everyday life of European businesses and consumers easier (The European Single Market - European Commission, 2017).
"Europe must prevent Greece from becoming an out-and-out catastrophe and make sure that the same fiscal 'remedy' is not applied to other weak economies" -- MEP, Franziska Brantner.
To most people in the United States hearing the word Euro brings about blank stares. Ask this same question in England or another European country and it means bringing Europe together under one common currency. The Euro can be defined as the common monetary system by which the participating members of the European Community will trade. Eleven countries Germany, France, Spain, Portugal, Ireland, Austria, the Netherlands, Belgium, Luxembourg, Finland and Italy will comprise the European Economic Monetary Union that will set a side their national currency and adopt the Euro in 2002. A new National bank, based in Frankfurt Germany, will be constructed and the interest rates that control the economies of these nations will be in the hands of this new system. It is indeed a great experiment, being masterminded in Frankfurt, one that will be felt through out Europe as well as the rest of the world.1
The theme of this essay outlines two things. One, the key elements of Bretton woods system and second, the characterisation of Bretton woods system by Ruggie as ‘embedded liberalism’, and how far he succeeds in it. The Bretton woods system is widely referred to the international monetary regime, which prevailed from the end of the World War 2 until the early 1970s. After the end of the World War 2, the need of international monetary framework to boost trade and economic; growth and stability, was important. Taking its name from the site of the 1944 conference, attended by all forty-four allied nations; the Bretton Woods system consisted of four key elements. First, to make a system in which each member nation has to fix or peg his currency exchange rate against the gold or U.S. dollar, as the key currency. Secondly, the free exchange of currencies between countries at the established and fixed exchange rate; plus or minus a one-percent margin. Thirdly, to create an institutional forum, so-called International Monetary Fund (IMF), for the international co-operation on money matters: to set up, stabilize, and watch over exchange rates. Fourth, to remove all the existing exchange controls limiting (protectionism) policies by the members, on the use of its currency for international trade. In practice the first scheme, as well as its later development and final demise, were directly dependent on the preferences and policies of its most powerful member, the United States. According to John Gerard Ruggie, 1982, this Bretton woods system of monetary co-operation represented the type of liberalism which characterise “domestic social economic stability along with a liberal trading order.” He referred this system as ‘embed...
Eurozone crisis has had huge impacts not only on the economy of the UE but also on the other countries who have economic and financial relations with the members of the union. The reason why we have decided to examine the Eurozone crisis in detail is to have a better understanding of the mechanisms behind this extremely important and complex problem and also to make accurate inferences about the solution alternatives. In our pape...
The first reason is the issue of euro. Considering a strong correlation between money and collective national identity, money can be used as an effective tool in facilitating the integration of diverse identities (Risse, 2003). Actually, the principal goal of the issues of euro is to promote the unification of the monetary system and foster integration of the economy in order to ease economic activities betwee...