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The purpose of selecting particular topics is to create a learning environment and allow students to enhance their knowledge of macro-economics. topics are designed to enhance the students knowledge by researching the topic, reading, and ex - Essay Example

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The European financial crisis describes a situation in which countries have not been able to repay their debts without the assistance of other nations or international bodies such as the International Monetary Fund and the World Bank since the year 2009. One of the main…
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The purpose of selecting particular essay topics is to create a learning environment and allow students to enhance their knowledge of macro-economics. Essay topics are designed to enhance the students knowledge by researching the topic, reading, and ex
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The purpose of selecting particular topics is to create a learning environment and allow students to enhance their knowledge of macro-economics. topics are designed to enhance the students knowledge by researching the topic, reading, and ex

Download file to see previous pages... Some countries such as Germany have adopted a very firm position on how to handle the situation which does not go well with other nations who have a contrary opinion (Hummel, 2013).
There has been a slow as well as indecisive response from the European decision-makers. The issues involve large number of nations with different divergent approaches towards solving the crisis which has contributed to slow pace of implementing the recommendations. Germany insisted on the adoption of stern actions aimed at reducing the budgetary deficits based on the postponement of other solutions. The slow response by the leaders allowed the problem to spread from one nation to another and the condition worsened at every instance.
Those responsible for the crisis in the financial sector include the commercial banks that have continued to use more risky financial instruments that have led to banks becoming weak in the sense that they have to use their personal funds to finance their huge deficits rather than lending to other firms as well as households. The crisis is due to the continued problems witnessed in the banking sector across the entire Europe. The banks have been deemed to be susceptible to the changes in the financial sector (Doyran, 2011).
The political class are responsible for the crisis in the government due to their hard and tough stance towards the coming up with solutions to the crisis. The political leaders are responsible for the violation of the set rules governing the operations of the European Union. Countries including Greece and Cyprus did not reveal the actual data on their financial and economic status. The political leaders in the two countries were responsible for the condition. The political leaders of some European nations such as Germany are very reluctant towards the implementation of the strategies that have been passed through the European Union.
One of the ways of solving the crisis is by ...Download file to see next pagesRead More
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