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The European Union: Eurozone in Crisis
2/1/2012
Overview:
Formed in the wake of World War II, the European Union (EU) was created to provide a unified trading bloc for Western Europe. As the EU has grown, it has faced obstacles to integration, such as the addition of Central and Eastern European countries and the rejection of an EU Constitution by France and the Netherlands. Now the European Union faces a sovereign debt crisis, threats to the euro currency and concerns over EU integration versus national sovereignty. Join Active Minds® as we explore the historical roots of the formation of the EU as well as the economic and social issues that challenge its present and future.
Key Lecture Points:
• The European Union is one of the largest economic markets in the world and a key American ally and trading partner. The evolution of the EU from a regional economic agreement of 6 countries to today’s supranational organization of 27 countries is unprecedented. For this number of nation states to give up any measure of sovereignty to an overarching entity is unique and presents serious challenges, particularly during times of economic instability.
• The EU is currently facing a sovereign debt crisis that is destabilizing the integrated economy of the euro area (or Eurozone). It is being hit by threats to its common currency – the euro – and to its future, with some member nations rejecting solutions to the crisis which they believe could challenge national sovereignty.
• The Eurozone crisis has toppled governments (Greece, Italy and Spain), collapsed banks across the zone and pushed two of Europe's biggest economies (Spain and Italy) to the brink of financial collapse. Now, it's even threatening Europe's most prosperous and stable core nations, France and Germany.
• Recent meetings among European leaders to avert a global financial disaster have met with some success, but also with disagreement and discord among EU members. The ability of members to agree on measures to fight the financial crisis, enforce financial regulations and move forward in a united manner will determine the future of the euro area and perhaps the EU as a whole.
Exploration Questions:
• What are the benefits and the disadvantages of a single European currency?
• How has the EU benefited the citizens of its member nations? What has been the down-side?
Reflective Questions:
• Have you traveled to Europe? What nations did you find most intriguing, and whay?
• What characteristics/traits do you associate with Europeans? Are they unique to one nation or found across national borders?
More to Explore:
• Web resources from the EU: http://europa.eu
• BBC coverage of EU challenges: www.bbc.co.uk
• NY Times Coverage of the EU: http://topics.nytimes.com
Books For Further Reading:
• Marsh, David. The Euro: The Politics of the New Global Economy. Yale University Press. 2009. 352 pages. Comprehensive political and economic account of the birth and development of the euro—the world’s second largest reserve currency. Click here to order.
• Pinder, John and Simon Usherwood. The European Union: A Very Short Introduction. Oxford University Press. 2007. 202 pages. The authors describe the history of the European Union, the momentous changes since 2002 and the challenges ahead. Click here to order.
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