Eurozone Crisis

Eurozone Crisis: Main causes. Possible effects if the Eurozone fall apart. Why Greece collapsed?  

The Eurozone, is an economic and monetary union EMU, formed by 17 countries who are members ofthe European Union. The euro is their common currency and legal tender. Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal,Slovakia, Slovenia and Spain, form the Eurozone.
The Eurozone crisis is Europe’s struggle to pay off the debts they built up in recent decades. Countries like Greece, Portugal, Ireland, Italy and Spainare failing to create enough economic growth, therefore making them no able to pay their debt. Global economy, since the U.S. financial crisis, has experienced a slow growth, with this exposing theunsustainable fiscal policies of many countries. The debt has made it difficult for countries to re-finance their government debt, without getting a third party involved. The causes for the Europeancrisis were a result from different complex factors. One of them being the globalization of finance, easy credit conditions caused the encouragement of high-risk lending and borrowing. Other causes werethe 2007-2012 global financial crisis, international trade imbalances, real estate bubbles that reached unsustainable levels, the 2008-2012 global recession, the choices taken concerning the fiscalpolicies in relation to government revenues and everyday expenditure, as well as the approaches taken by nations to help out banking industries and bondholders in trouble, by assuming private debtburdens or socializing losses.
The possible effects, of the Eurozone falling apart are both negative and positive, since it would introduce new costs and disturb global trade balance. While on the otherhand, by it falling apart the debt would become more manageable. On the positive side, if the southern members of the Eurozone were to leave, new national currencies would be made, which would be...