The Euro zone was formed in the previous decade to promote economic growth and stability through region wise cooperation of the multiple small western nations. While designing the formation of the euro zone various rules, policies and guidelines of economic and political background were outlaid to form a guiding principle for the nature, method and mode of operations for the nations represented under the Euro zone. However, with the passage of time, most of the laws were overlooked and broken by the participating nations of the Euro zone (BBC News, 2012). It has to be said that some of these nations are almost on the verge of bankruptcy and are looking forward to implementing government spending cuts as well as launching austerity measures to tackle the national crisis spread over multiple regions.
It has been realized that after the crisis of the US banking sector the year 2008, the multiple nations of the Euro zone has amassed enormous amounts of debts during the process of conduction of operations. This is playing a major catalytic role in regards to the process of restoring growth and stability within the Euro zone nations (Inman, 2013). With the entry of Cyprus in the Euro zone crisis, the macro economic crisis of the multiple western nations is far from over (Pratley, 2013). ...Show more