In those countries that have their own currencies, plunging economic periods usually engage governments to spend more money to make more jobs and create more growth. And if their currencies lower in their value, their currencies will fall in value, which will make products and goods less expensive on international markets and it will help exports.
Countries within the EU, however, don’t get these tremendous benefits and perks.
The euro currency has rules that restrict the size of budget deficits that are allowed by its participating nations. In trying financial times, those member countries that have the euro are forced to pass on the restrictions to the common people and the lower classes by reducing pensions and lessen other public spending such as welfare and heath services.
This is not so for other western counties that aren’t a part of a governing zone.
In fact some analysts have told how the euro currency is one of the leading sources of monetary inequalities in Europe that has cut EU nations into two camps – those with credits and those with debts, otherwise known as creditor and debtor nations, which puts the stark financial realities into profound and exacting terms.
It is not a perfect System but it is one that the EU needs to work with.
