The European Union has initially emerged as a project to form a union based on economic cooperation. However, its implementation has brought about a different momentum over time and politics have gained the upper hand to economics. While the political idea at the basis of the economic union was to balance and rein in Germany, what evolved in time appears to be how Germany reorganizes the union. It is possible to look back at the breaking point of economic thought undermined by political ambition in the decision to form a Euro zone. Although the incontestable value of a monetary union to economic development and growth is clearly known, the also well known indispensable rules and requirements for forming a common currency has been ignored and the economic locomotive countries of the EU have acted with extreme self-confidence as all others went along with the understanding that the caravan would shape up on the road. The country benefiting the most from the Euro zone economic implementation, as expected and calculated, has been Germany. On the other hand, the eventuality of opting out or being dismissed from Euro membership was considered not to be necessary in the engineering of the Euro zone and thereby no such mechanism had been formed, whereas exactly this situation has emerged as an inevitable necessity in today’s conditions. The Euro zone mechanism has been formed in such a manner that regardless of the size of the wheels, any break with one cannot be by-passed and it paralyzes the whole mechanism. In a research conducted by the Bertelsmann Foundation in Berlin on a possible worse case scenario, it has been calculated that Greece, Italy, Portugal and Spain’s separation from the Euro will have a bearing of 17 trillion Euros on world economy. The effects of this tremor will be felt from the US to China and the countries separating from the Euro will end up in the clutches of social chaos and political instability. As regards Turkey’s neighbor Greece alone, its separation from the Euro is estimated to cost 674 billion Euros for world economy, while its cost to Greece will be 164 billion Euros and to Germany 73 billion Euros. In a research conducted on other countries requiring assistance for bail out, the cost of their separation for Germany’s economy has been calculated as follows: 225 billion Euros for Portugal, 805 billion Euros for Spain and 600 billion Euros for Italy. Accordingly, the EU’s powerful economies, with Germany being at the forefront, are faced with a serious dilemma. The disintegration of the Euro zone will cause an unbearable economic burden for all involved. On the other hand, for the continuation with the Euro, regular contributions by prospering economies will be required in balancing the level of welfare of economies producing less. This situation could cause a negative precedent for some, hampering competitive will and the drive to produce more. Such a development will surely not reduce applications for assistance and will probably encourage new countries to join the row. The Greek Administration of Southern Cyprus currently getting in line could be a case in point.
© 2009-2024 Center for Eurasian Studies (AVİM) All Rights Reserved
No comments yet.
-
THE DIASPORA’S CLAIM FOR COMPENSATION
Alev KILIÇ 11.10.2012 -
DEATH OF A SHEPHERD
Alev KILIÇ 05.08.2013 -
THE SOFT BELLY OF EUROPE: THE BALKANS
Alev KILIÇ 06.11.2012 -
THE UNSTEADY SOUTHERN CAUCASUS
Alev KILIÇ 18.11.2014 -
WHERE DO ARMENIA AND ARMENIANS GO WRONG – A NEW YEAR’S WISH
Alev KILIÇ 27.12.2015
-
THE 20 JUNE 2021 SNAP PARLIAMENTARY ELECTIONS IN ARMENIA - III: REGIONAL IMPLICATIONS
Turgut Kerem TUNCEL 28.06.2021 -
NEW ARTICLE ON THE DASHNAK ERZURUM CONGRESS OF JULY 1914
AVİM 09.12.2021 -
THE EUROPEAN UNION’S GUIDANCE BY POLITICAL SUBJECTIVE INCENTIVES RATHER THAN COMMON ECONOMIC INTERESTS IS TO BE SEEN IN THE EXAMPLE OF TURKEY’S SEGREGATION
Alev KILIÇ 19.11.2012 -
FRANCE ADAMANT IN COUNTERING TURKEY
Ali Murat TAŞKENT 25.10.2016 -
THE FUTURE OF THE TURKIC COUNCIL
Gülperi GÜNGÖR 02.03.2021
-
THE TRUTH WILL OUT -
Türk-Ermeni İlişkileri Üzerine Ömer Engin Lütem Konferansları 2023 -
Türk-Ermeni İlişkileri Üzerine Ömer Engin Lütem Konferansları 2022 -
RADİKAL ERMENİ UNSURLARCA GERÇEKLEŞTİRİLEN MEZALİMLER VE VANDALİZM -
PATRIOTISM PERVERTED -
MEN ARE LIKE THAT -
BAKÜ-TİFLİS-CEYHAN BORU HATTININ YAŞANAN TARİHİ -
INTERNATIONAL SCHOLARS ON THE EVENTS OF 1915 -
FAKE PHOTOS AND THE ARMENIAN PROPAGANDA -
ERMENİ PROPAGANDASI VE SAHTE RESİMLER -
Türk-Ermeni İlişkileri Üzerine Ömer Engin Lütem Konferansları 2021 -
A Letter From Japan - Strategically Mum: The Silence of the Armenians -
Japonya'dan Bir Mektup - Stratejik Suskunluk: Ermenilerin Sessizliği -
Türk-Ermeni Uyuşmazlığı Üzerine Ömer Engin Lütem Konferansları 2020 -
Anastas Mikoyan: Confessions of an Armenian Bolshevik -
Sovyet Sonrası Ukrayna’da Devlet, Toplum ve Siyaset - Değişen Dinamikler, Dönüşen Kimlikler -
Türk-Ermeni Uyuşmazlığı Üzerine Ömer Engin Lütem Konferansları 2019 -
Türk-Ermeni Uyuşmazlığı Üzerine Ömer Engin Lütem Konferansları 2018 -
Ermeni Sorunuyla İlgili İngiliz Belgeleri (1912-1923) - British Documents on Armenian Question (1912-1923) -
Turkish-Russian Academics: A Historical Study on the Caucasus -
Gürcistan'daki Müslüman Topluluklar: Azınlık Hakları, Kimlik, Siyaset -
Armenian Diaspora: Diaspora, State and the Imagination of the Republic of Armenia -
Ermeni Sorunu Temel Bilgi ve Belgeler (2. Baskı)
-
EU-TÜRKİYE COOPERATION IN CENTRAL ASIA AND SOUTH CAUCASUS: TOWARDS SUSTAINABLE ENGAGEMENT IN ENERGY AND CONNECTIVITY -
AVİM 2023 YILLIK RAPOR | ANNUAL REPORT -
ÇAĞDAŞ BATI AVRUPA AKADEMİ DÜNYASINDA IRKÇILIĞIN VE YABANCI DÜŞMANLIĞININ ARAŞTIRILMASININ ZORLUĞU: FRANSA ÖRNEĞİ
-
CONFERENCE TITLED “HUNGARY’S PERSPECTIVES ON THE TURKIC WORLD"