Euro crisis Assignment Example | Topics and Well Written Essays - 6000 words

Euro crisis - Assignment Example In other it will shed light on the factors that are responsible for the generation of such situation. Furthermore the consequences of the euro crisis will be emphasized. Some examples will be also presented to illustrate the impact of the situation. During the year 1992 the leaders from Europe signed an agreement on ‘European Union’. The agreement was also known as Maastricht Treaty (â€Å"Key Dates in the History of European Integration†). The contract laid the foundation of the fiscal union and was also about the adoption of Euro. The treaty eventually bounded all the monetary policies & currencies to bring it under one single roof. This included the countries such as GIIPS (except Greece), countries with stable and largest economies and also the nations of northern Europe with successful economy. The northern European members such as Germany, Belgium, Austria, France, and the Netherlands expected that the economy will diffuse throughout the whole periphery. The members of EUN also thought that their economies will prevail over the economies of GIIPS. Averaging the public borrowings costs and the inflation levels for the period of 1980 to 1990, the GIIPS (except Greece) witnessed that their interest rates and inflation congregates with the EUN in the year 1990 (â€Å"Europe’s Debt Crisis: More Than a Fiscal Problem†). The Mauritian financial system was affected by a major outside factor and this time it is the financial crisis in Europe or popularly known as the Euro zone Crisis. The European sovereign debt crisis or popularly known as the Euro Crisis is an ongoing financial emergency that has caused difficulties for a number of countries from Europe in refinancing the debt of their Government (Khan). The situation got worse to such extent that without assistance of any third party it will be impossible for the respective Governments to repay their debts. In