Euro Politics Essay

Euro Politics Essay - Lane -1 Marc Eric Lane 11/9/11...

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Lane --1 Marc Eric Lane 11/9/11 European Politics The Welfare Crisis One of the crucial elements of European policy debates over the past decade has been regarding the economy and how public debt is to be managed. Countries with ever rising national debt such as Greece and Italy clash with economically stable countries such as Germany and the Scandinavian Social Democracies regarding the allocation of funds. Unlike the United States’ crisis, which has its roots in privately owned banks, the crisis in the European Union is more a question of Sovereign Debt , and how countries with high levels debt should interact with other countries within the union. The Hellenic debt crisis is a prime example of this. Greece, a highly social-democratic SME, in 2011, spent 46.8% of its GDP in public expenditures 1 , which is comparable to the EU average, however if one takes into account the GDP itself, the situation changes drastically. According to the Eurostat, the statistical center of the European Union, Greece registered a significantly lower GDP than the Eurozone average, an underwhelming 220024 millions of Euros, which amounts to less than 10% of more economically advanced European countries such as Germany registered. Considering the amount and quality of the welfare services that Greece offers, it cannot be surprising that its debt levels soar higher than any of the other countries in the Eurozone. What are possible solutions to this crisis? If a social-democratic SME is not economically possible, what form of welfare state will work, if any? Ideally, a country in Greece’s situation would need to seek to reduce the size of its social welfare programs without abolishing them completely. In essence, it should move from its social- democratic roots to a more liberal standing, particularly regarding the economy. The main differences between these forms of Market Economies are illustrated by economist Jonas
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This note was uploaded on 03/21/2012 for the course POLI SCI 311 taught by Professor Jonmarandici during the Fall '11 term at Rutgers.

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Euro Politics Essay - Lane -1 Marc Eric Lane 11/9/11...

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