Greece, Portugal, Ireland and Spain are all members of the European Union. All h
ID: 1201319 • Letter: G
Question
Greece, Portugal, Ireland and Spain are all members of the European Union. All have gotten themselves into sovereign debt trouble (the government can’t pay its debts). Greece recently received a bail-out package from the EU after months of drama. Spain and Ireland are on the mend fiscally. State your opinion and support it: should the EU bail out countries that can’t manage their fiscal affairs, or should the EU simply let them go broke and stiff those who were stupid enough to buy bonds issued by those countries?
Explanation / Answer
With the recent economic downfall of Greece and the edge of crises faced bty Spain and Ireland has raised many questions. The most important one is to whome to be blamed for such crises.
Lets start from the beginning, for being entered in eurozone there are certain criterias. At first countries like Greece were not meeting those requirement to be eligible to enter the eurozone then if it gets in then further it shouldnt have allowed to have spent far beyond its means, running a Third World state in a First World area. The banks should not have lent so much to Greece, and once they did so, they should have been forced to accept the adverse consequences of their own bad bets. European leaders should have dealt with the crisis earlier and then should have recognized that their supposed remedies were making matters worse rather than better.
Thus, EU should bail out countries that can’t manage their fiscal affairs.
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