The formation of European Union was an economic breakthrough for Europeans to compete, balance and even counteract the stronger economic blocks especially United States and Asian economies; particularly the euro currency is to stand up to the indomitable US dollar. For some time it appears that everything was working for Eurozone and its euro currency, for the global reserve was increasingly held in euro after dollar. At a point it begins to look like many nations are doing business and keeping reserves in euro as dollar was fluctuating, due to
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“There are also fears the troubles could spread. The PIGS (
The nations of European Union must adhere to monetary rules and regulations stipulated by the economic and monetary union inorder to maintain a bullish euro. By so doing it can become attractive to perspective investors and nations willing to keep reserves in euro. Although, the disaster in
“The latest flow figures from fund tracker EPFR Global actually show a small net inflow of $861 million into European equity funds, including
The continent of
The purported common monetary policy for Eurozone is metamorphosing into a mirage because each member nation still held steadfastly to its own respective currency together with its monetary policy. The member nations of European Union with its currency at its backward have not truly accepted euro as the only currency.
A strong Eurozone with its euro are good for global economy because it encourages healthier competitions, a booster for free enterprise and unbridle capitalism. When Eurozone fails to put her house in order, it will fundamentally weakens the union and waned down the strong euro currency, even retards the progressive society Europeans are struggling to formulate.
Emeka Chiakwelu is the Principal Policy Strategist at Afripol Organization. Africa Political and
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