IS THE EUROZONE RESCUE STRATEGY TANTAMOUNT TO THE REARRANGEMENT OF DECKCHAIRS ON THE TITANIC? Cover Image

ДА ЛИ СЕ СТРАТЕГИЈА СПАСАВАЊА ЕВРОЗОНЕ СВОДИ НА ПРЕУРЕЂИВАЊЕ ЛЕЖАЉКИ НА ПАЛУБИ ТИТАНИКА?
IS THE EUROZONE RESCUE STRATEGY TANTAMOUNT TO THE REARRANGEMENT OF DECKCHAIRS ON THE TITANIC?

Author(s): Miroslav N. Jovanović, Isidora Ljumović
Subject(s): Politics, Economy, Supranational / Global Economy, Economic policy, EU-Accession / EU-DEvelopment, Financial Markets
Published by: Матица српска
Keywords: Eurozone; deficit; debt; Greece; Ireland; crisis;

Summary/Abstract: The Eurozone is the crown jewel in the process of European integration. Since this monetary integration is a predominantly political process, it neglected certain economic fundamentals for the long term durability (federal-type intra-group transfer of funds). The internal troubles of the Eurozone (lack of respect of rules) were amplified by the global credit crunch. There are worries about the promises given to the citizens about the stability of the Eurozone and economic progress when the zone was introduced. So much political and economic capital has been invested in the Eurozone that its demise is unconceivable for the time being. If the participants believe that it is a beneficial deal it will continue its existence, but several federal-type amendments are necessary. Otherwise, it may join a series of monetary zones in Europe that disintegrated. Even though the Eurozone burdens some of its member countries with high costs, the break-up of or from the Eurozone would be even worse.

  • Issue Year: 2012
  • Issue No: 140
  • Page Range: 437-453
  • Page Count: 17
  • Language: Serbian