Euro of Supply Chain
One year after the Greek crisis which had damaged the European Union and more precisely, its currency; the euro, the world markets start to panic again.
On July 5, the rating agency Moody's lowered Portugal's rating to relegate it to a speculative rating, sowing a wind of panic on the financial markets and arousing the anger of the Portuguese and European people.
In recent days, speculators have been targeting Italy and the fact that despite its impressive deficit, the government has not decided to take austerity measures to curb the debt.
In all these successive crises, it is the Euro which has been weakened and which is experiencing an unprecedented crisis. Indeed, the 2008 crisis was the catalyst that highlighted the weaknesses and limits of the Euro zone.
Without real political authority, they could not deal effectively with the problems faced by countries personally.
For Greece, many alarm signals were triggered, but unable to find a quick decision and invest the necessary money, for lack of a budget worthy of such an organization, the European Union had to ask for aid to the IMF.
The Euro is going through an unprecedented crisis and must prepare for other crises to come with Portugal and Italy, and perhaps even Spain in the medium term.
But can we really envisage the failure and pure and simple abandonment of the Euro? While the European Union refuses to consider this possibility, a certain Mark Cliffe has sought to imagine the situation of European countries.
The situation is alarming: a recession of 10% over 3 years could be envisaged, but it is above all the international barriers and the control of exchange rates that would be a disaster and not only for the member countries.
Indeed, it should be remembered that the European Union accounts for 50% of international trade and the single currency facilitates trade within the euro zone. For example, France's first partner is its neighbour, Germany.
In addition, the consequences for global companies would be enormous, Mr. Vivek Sood, an expert in international logistics commented on the question: “It would be a huge setback for the European Union, but also for globalization in general.
The single currency makes management much easier for businesses; the euro zone is a vast and competitive market.
In addition, fluctuations and exchange rates no longer exist, which makes it possible to make significant savings.
Even if Europe and the euro seem to be in crisis for almost more than a year, we must not forget that the greatest advances of the European Union have been made under the yoke of crises and tensions.
To conclude, in such a competitive world, the end of the single currency would sound the death knell for the place of the European Union on the economic and geopolitical level.
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