By HImfr Ivy

Bad-mouthing the lack of rational analysis of the practice in Europe, the Greek debt crisis will not lead to the collapse of the euro area.

The impact of the global financial crisis, the near bankruptcy of Iceland, Greece and other countries into a serious debt crisis. Some domestic scholars and media pessimistic about the EU, fearing the disintegration of European integration will go to the euro area will collapse. The Chinese Society Professor Zhou Hong Europe that the EU is in constant overcome the crisis and solve the difficulties ahead, the EU is not getting worse, but more on each situation. The establishment of European integration and the EU is an initiative of World War II, European integration will not bad-mouthing.

European integration is entering a critical moment, the euro is facing severe challenges. Euro set on how to reform the defects and improve the EU’s economic growth, but also a long and painful adjustment process. The EU has embarked on the road of integration, if the back or hesitation in the political, economic, and law will pay a heavy price.

Greece and other countries the debt crisis of the real economic problems, a unified monetary policy in the euro area fiscal policy and decentralized institutional lack of coordination between the defects caused by the significant correlation with the economic downturn, but also the debt crisis in these countries The internal factors, such as southern Europe’s per capita income significantly lower than the north-western Europe, but the level of benefits is in line to the north-western Europe. WU Yi-Kang also believes that the real debt crisis in southern European countries is the result of living beyond the spending habits of the financial crisis. Chinese Academy of Social Sciences researcher Wang He believes that the management of southern European countries for its low level of welfare is the fundamental reason for a debt crisis. Strictly on the surface into the existing mechanism of the euro area, there are penalties distinct mechanism; In fact, the euro area of the qualification standards are not in place, after entering the constraints are not severe phenomenon.

Some experts believe that only by establishing for the euro zone’s exit mechanism, the real constraint to the views of the euro area member states, once the country out of the euro, the cost will be high. Euro flawed, but it will not collapse. The euro is not only an economic problem, or a symbol of European political integration. If not the euro, some of this debt crisis will be even greater impact on Member States, which is still state the reasons for applying to join the EU.

Greece is well below the debt crisis in Europe who said bad-mouthing. Generally go through four stages of the debt crisis: the national debt due to inability to pay, still unable to repay after borrowing money, debt restructuring, bankruptcy. Greece is the first stage. With the assistance of the European Union, Greece basically through the crisis, did not reach the extent of the Latin American debt crisis.

Expansionary fiscal policy help to stimulate economic growth, but easily lead to debt crises. More attention to the EU fiscal consolidation, and the member governments are more concerned about economic growth. Profound reflection on the basis of the European Union is launched a series of long-term development strategy, the progressive realization of the “smart growth, sustainable growth, full growth” as the focus of the new economic development model, and establish the integrity of financial market supervision system, cross-border financial institutions, crisis management framework and the European Monetary Fund, as the financial, control of the debt crisis in the bud stage, while avoiding the verge of collapse because of deep financial crisis, financial institutions or the euro area member states off a chain reaction. The inherent limitations of reform measures in the EU, in the approval, they may distort the process of implementation, the actual results are subject to various factors, therefore, the prospects for reform and development of the EU is still full of hardships.

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Source: isnare.com

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