The Future of the Euro

July 21, 2011 in Daily Bulletin

The euro, the currency used by many European nations for the purpose of more closely aligning their economic interests, seems to be in trouble over the debt crisis that Europe is facing. The problem is that Greece, Ireland, and Portugal have suffered from serious debt problems and required a bailout from other, more financially stable European countries. This bailout proved to be inadequate as the debt problems still loom large. However, countries that have kept their debt down and have remained financially stable are not to pleased about being put in a position of having to use their funds to bail out other countries that have not acted quite so responsibly. Thus, after the first bailout, which itself involved a great deal of debate and anger, it has become unclear whether these other euro-zone members would be willing to move forward with another bailout. It appears that one will be needed to keep countries like Greece financially afloat. Therefore, the euro-zone is facing some serious questions over how to solve these problems and what the future of the euro may hold. The IMF has painted a rather bleak picture for the future of the euro – a future that may not include the euro at all. This seems to be a rather extreme scenario, but there is no denying that the euro-zone, and its currency, are facing some serious problems right now.

Source: Washington Post