For Some in Euro Zone, Dream Turns Nightmarish

Kelsey Walker

1/23/09

4:25

The adoption of the euro currency was meant to economically and politically support European nations but with Europe’s economical issues, nightmares have occurred for some euro zone countries. Wealthier nations like Germany and France are developing billion-dollar stimulus plans to help there nations undergo the recession sweeping across Europe while poorer economies are dealing with the idea of removing themselves from the euro because of fear for bankruptcy. Greece, Ireland, Portugal and Spain are having trouble pulling themselves out of debt while having to operate on the same currency rate as wealthier European nations which makes it harder for them to ride out issues with abundant spending. Many experts believe that Greece has the tougher issues and is in major economic trouble. Greece receives bond from Germany however with gap between the interest rate it is making it harder for Greece to be able to trade or borrow from Germany. Also surplus from Germany is no longer being recycled back into the country. Greece’s economy has to pull themselves out of situations that become too expensive for them because they must share the same currency as economically stable countries. Greece it fighting for their counties economical future. Some people have their heads held high and some are prepared to draw back from the euro zone and pull themselves out of their recession saying that other counties in need should do the same.

This issue facing Greece and the other countries can be economically hard. Having to share currency rate with wealthier nations while going through a recession is very difficult upon the survival of the euro zone. With the help of other euro nations bankruptcy can possible be avoided but if change does not occur then a decrease in the 16 euro countries will drop.

http://www.nytimes.com/2009/01/24/business/worldbusiness/24euro.html?pagewanted=1&ref=economy