Solving Eurozone Financial Crisis - Essay Example

Solving Eurozone Financial CrisisThe financial crisis hitting Europe has become a common phenomenon that seems to last for days to come considering no plausible solution is forthcoming. Perhaps the primary reason why there is no solution just yet is because too many proposals have been made but agreeing with the best one is a problem. For instance, whereas Ian Buruma sees a solution through political lens, Fareed Zakaria sees a problem in need of financial approach. Buruma’s argument on the political origin of European current crisis holds water.

According to him, European single currency dream died in its infancy at the time of implementation since political goodwill to help weaker nations then was lacking. However, for Buruma to suggest a political solution is a wild unrealistic dream since European region is synonymous with self-centered political and democratic interests. Indeed, a flashback on causes of World War 1 and World War 2 had strong political correlation that has since then made states more cautious on interstate politics and democracy issues.

Zakaria on the other hand suggests a workable financial solution to Greek’s financial nightmare. Bailouts and financial restructuring has not worked so far largely because they have not provided favorable economic growth for Greece. Greece and Italy crisis is not just a problem of respective countries but a financially cancerous disease for entire Europe. Europe can only resuscitate Greece’s economy by enabling Greece attract capital and investments whilst keeping wage bill within manageable limits.

The moment Greece starts recording positive economic growth, recovery will be guaranteed. This approach is highly likely to succeed since it does not require dramatic political and democratic restructuring of entire Europe zone. In simple terms, it is better to show Greece “how to fish” instead of “lending them a fish” every time they are hungry.