What caused the Euro crises of 2010 Essay Example | Topics and Well Written Essays - 500 words

What caused the Euro crises of 2010 - Essay ExampleTo reiterate, the euro crisis was but a responsibility of lack of a common regulatory system to moderate free-riding and/or inject firepower to member states economies face up with insolvency risks, and that other factors such as the globalization of finance as well as the global respite that followed the 2007-2009 global financial crisis only added fodder to a system precariously on the edge.The Eurozone as before structured was more of a gentlemans agreement requiring member states to follow a akin(predicate) fiscal path, yet with much weird freedom to follow own fiscal policies that includes masking of familiar monetary downstairstakings. This feature brought on board fiscally free riding peripheral economies as stand for by Greece economic dynamics pursuing parallel fiscal policies in total disregard of the Maastricht treaty, under which member nations had pledged to limit their debt spending (Cameron 2012 European Commis sion 2008). Though Greece became the pillar of focus in a crisis that has proved counterproductive to a number of the austerity measures implemented, the pursuit of wealth in non-approved mechanisms were far-flung across Europe, with quite a number of states securing future cash flows via sovereign rights in effect, providing governments with a vehicle to raise future revenues that kept up with the debt targets, but in contravention to the long regarded conventional silk hat practices and internationally agreed standardsIn Boomerang Mr. Lewis captures the utter folly and madness that spread across two sides of the Atlantic during the last decade, as individuals, institutions and entire nations mindlessly embraced instant gratification over long-term planning, the besides good to be true over common sense (Kakutani 2011).Like the bursting of the US housing belch that ignited a second global financial crisis in less than a