Response of EU Crisis: This Week Could Change the Global Economy Articleby Smith - Essay Example

The move to start working towards a bank recapitalization might be a short-term solution for the moment but is definitely not a solution to these crises. Definitely, aspiration for political union might be a wrong move, which might be a source of future crisis.

The introduction of continental concepts such as common currency seemed a good move, which is now on the verge of collapsing. Therefore, it would be wiser if the European Council looked for a better solution since the above moves might only complicate the issue further, considering that some European Union members do not agree with current pleas to bail out countries such as Spain from the debts they are facing. The move might buy some time for relative calm but might soon prove inadequate to suppress the crisis.

Eventually, European financial markets might worsen resulting in worldwide depression. The crisis could be an indication that the reliability of European policymakers is increasingly becoming nonaggressive. There has been a lot of insecurity since the European economic and debt calamity exploded three years back, but the current situation requires urgent and ingenious measures if a long-term solution is to be established. However, there is a need for the establishment of a framework for an extra-unified European Union failure to which, the EU will collapse.

At this stage, it is crucial that the European Union salvage the already collapsing European economies as they look for a long-term solution to the crisis, which might take some time. It sure is a time for European Union to make one more dynamic step, with a greater magnitude, and decide on whether to resolve the current crisis united or to split up