Abstract:
The creation of the single currency is the great experiment of the European Union. In the years immediately following 2002, the benefits of having the single currency seemed to far outweigh the negatives, and eventually the euro zone grew to 17 countries and principalities. When the euro was first created, all of Europe suddenly enjoyed low interest rates and increased credibility. As a result of this new economic climate, some southern European countries were able to borrow more than they should have been able to, resulting in what has been coined the European debt crisis. The tipping point in this crisis is somewhere in 2008, but what exactly set things in motion? This paper takes a look at key countries and potential causes of this continent-wide crisis.
