Monday, March 2, 2009

The EU and the Economic Crises

The differing impacts the economic crises is having across the European Union is causing some splits in the EU. Some members of the Central and Eastern bloc are doing well given the circumstances (Poland, the Czech Republic) while others in the bloc are in dire straits (Hungary, Romania). There are differences across the Western countries, with Ireland, Italy, Spain, and Greece being hit harder than the rest. Since these nations are prohibited from taking substantial unilateral action to stimulate their economies, the EU is facing its first major challenge.

A professor of mine about 6 years ago speculated that the euro zone would be fragmented when some of the member countries had especially bad economic circumstances and the EU wouldn't act as aggressively as they hoped. Could they be facing that situation?

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