Tag Archives : Euro Zone

One Small Crack In The Euro Zone, One Giant Hole For The European Union

Studying EU Law at university as one of my modules, it is quite exciting that we are in the middle of such developments with regards to the Euro Zone. It is true that I can’t help but think all this work (and indeed pain) that comes with studying EU Law will be for nothing if the European Union begins to collapse. Personally I am not a huge fan of the EU, the very fact that it costs the UK taxpayer over £50m each day is perhaps one of the biggest reasons. Whilst we do get free trade as being part of the EU, some countries are prevued to this agreement however have not signed away their powers to the EU and costing the this amount in the process. The Euro was the first single currency that aimed to unite and bring those member states of the EU closer, encouraging international trade further by abolishing currency conversation rates and further limiting trade restrictions – however this has since been called into question. With several of the Eurozone countries in serious economic difficulty, the cost of all EU member states to keep this single currency has increased from hundreds of millions to billions. The EU in my opinion has always been a charity project, taking money from the richer states, and giving it in the form of CAP and other benefits to less economically stable. Whilst philanthropical activities are encouraged, it is my view that this should be determined on an individual basis, and not burdened on the tax payer as a whole under the vial of it being a treaty. Gordon Brown, quite rightly decided to keep Britain out of the Euro, and over the past several hours David Cameron has stated that he will not back any Euro bailout plan that does not protect the UK; and whilst I fully support the action taken by David Cameron, this lack of willingness to support the Euro, which is in affect the EU’s baby – has cast doubt on the strength of the EU as a whole. The EU was created in the time of war, in an attempt to bring countries closer together; however the economic crisis has had the opposite affect. Countries who have taken risks financially are having to depend on those who have not in order to bale them out – which has caused outrage for those countries footing the bill for other members recklessness. It is the case that in most cases, those who are bailing others out are also in financial trouble, so bailing others is likely to put them in difficulty. If the Euro is to collapse either entirely, or reformed but with fewer more stable countries this will be the first part of dismantling the EU, after all, if states have had enough of supporting the currency, what hope does the Commission have to implement further changes? The controversy that the Euro bailout has caused, does cast doubt on the effectiveness of the EU as a whole, as it has proven that unity may good upto a point, however expecting others to consistently pay for the risks you have taken is a liberty that takes generosity too far.