Editor in Chief: Moh. Reza Huwaida Sunday, May 31st, 2020

The Euro Financial Crisis

It is an accepted theory among modern economists that people react quickly against any change in money-wage unlike in the case of real wage. Do some Euro-countries undergo the same economic nightmarish reality? The answer seemingly is positive. Last year, in G8 summit, president Obama remained isolated in pushing for further incentives and his close European allies, like David Cameron, retorted negatively to the calls for injecting cash into market in order to restore market confidence, instead, approved the general call of G8 for taking austerity measures or tightening economic belt.

Before and after the summit, the pro an anti austerity measures have been in fierce battle over whose project would prove effective in dealing with economic recession and bringing economy back on track. The battle has not come to an end as both wings claim that governments around the world failed to put their plans effectively on the ground.

Anyhow, strong economies in euro-zone are under embattled condition to bailout Crisis-laden countries like that of Greece, Spain and now, a much bigger economy, Italy. Countries like Spain, trying to acquire sympathy of financers like Germany and World Bank have employed huge austerity plan to be qualified for another round of bailout. But those measures have sparked civil disobedience and series of protest and demonstration which, in turn, indirectly impose loss on the already financially strained government budget.

Such demonstration are not exceptional in weak economies of euro-zone, but strong economies like Britain are also struggling with anti-government policies' austerity measures like lessening of welfare programs and asking for bigger percentage of public employees for pensions and etc.

These all show that Europeans, during decades enjoyed a dignified level of economic prosperity, react quickly and are sensitive against any plan or policies that emerge to weaken the convenient prospective. Now they are not willing to share the burden generally brought about by inappropriate activities of Wall Street and global financial institutions. They are fighting back and asking government for generation of jobs, which has now become the biggest dilemma of developed countries.

Perhaps, if a similar crisis had occurred in bigger economies of Asia, such resistance wouldn't have been witnessed. However, it should be noticed the above statement does not mean that other people act more responsibly in comparison to Europeans. Rather, it means that people in these countries haven't been deeply embedded in economic prosperity yet. Thus, they could cope with the situation, unlike people in developed countries.