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Poll 211 Wek 8 Dis - Essay Example

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s member-states include the normalization and balance of economic policies to ensure that member states are uniformly represented in the conduction of business within the Eurozone. Among the institutions that make up the European Union include the Council of European Union, European Council, Monetary Union, European Commission, European Central Bank, and the Court of Auditors in addition to others. The overall functions of the European Union are related to the individual functions of the comprising institutions (Hahari, 2014).
The causes of the Eurozone Crisis are cumulative and form from the economic and financial decisions the members of the EU made as well as the corresponding effects on the economy. In the development of the Euro as the legal tender for the EU, member states had to decide on how to balance states with a larger economies with those with lower economies. In doing so, the value of the Euro was set averagely low value which affected large economies and small ones as well. Since large economies, like Germany, developed slower than smaller economies, like Greece, the low value of the Euro increased the chances of developing states to borrow cheaply (Jordan, and Adelle, 2012). In addition, nations such as Greece had high public debt of €240 billion while Ireland’s was €85-billion debt, Portugal’s was €78-billion public debt, Spain’s was €41-billion in loans, and Cyprus’s was €10-billion contributing and integrated with the collapse of the banking system. Provided that majority of the loans involved in the Eurozone crisis were funded by other members of the Eurozone, it was inevitable that the union would not sustain its operations as financial constrains were ...Show more
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Summary

Functions of the European Union involves drafting, debating, voting, implementation, and enforcement of regional political, economic, and socioeconomic policies aim at controlling and overseeing the activities of member states. The EU is made of 28 states that join hands to deal…
Poll 211 Wek 8 Dis
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