Another Bailout! Have fun European Union, enjoy Greece

Western market news shifted to Greece this past week. The country’s egregious debt caused far-reaching ripples. The market stagnated on word if Greece would be rescued. Bringing up the issue of the strength and direction of the European Union.

Greece’s situation is not unique in a financial aspect but in a political aspect, it is profound. The 16 State currency solidarity removes the option of devaluing the Grecian currency, which could increase export competition. But Greece’s problems are now Europe’s problems and a union-wide bailout is inevitable. However, the important thing to note, is that the EU is not set up to allow a union-wide bailout, and a move toward doing so is risking both political and fiscal amalgamation.

The problems with Greece have exposed the essential dichotomy between the EU’s ambitions to be a sound and integrated economic sphere and its dedication to respect national sovereignty. Berlin and Brussels have all cried for serious budget cuts within Greece and national polls in Germany have overwhelmingly urged to punish Greece for its rotten spending. But Greeks counter argue that they already have the lowest salaries in all of Europe and nation-wide budget cuts and curtailed spending could worsen the situation.

Spain, Italy and Portugal economies are all struggling and similar problems with them could be on the horizon. If countries like Germany and France dig into their own pocket to rescue Greece, will struggling countries in the EU be inclined to do their own national reforms? The first crisis of the Euro will certainly be an important moment to the Euro Zones and to all world markets.