Pros And Cons Of The European Crisis

SCENARIO TWO: Lack of Substantial Changes
In this second scenario, Europe will continue suffering the effects of the current crisis. Europe muddles through while continuing its fight toward banking and fiscal integration. In other words, the European Union will keep doing business as usual where the European Institutions will keep doing very little to resolve crisis with increasing chances to respond too late to some emergencies. In this future scenario, the southern European countries will still need bailouts and the monetary and economic union will remain incomplete. The Union will start losing competitiveness against the United States, China and possible Russia and some of its members may decide to leave the union (The United Kingdom and Greece). In other words, the European Union will stay immersed in its present crisis mode; …show more content…
In other words, the union will enter into a loop of stagnation with economic deflation and high debt ratio. The consumption in the region will fall and unemployment will rise. To maintain the competiveness of certain corporation, cut outs will be necessary and investment will stall. Prices and wages will decline with serious consequences for businesses and the European population, as their repayment capacity will decrease and the amount of debt will remain the same or even surge. The union will enter in a vicious circle; however, this can only be a transition phase to a worst scenario. Various circumstances can also trigger changes to other scenarios like social unrest and mass protests on the streets that could end up breaking the European Union. The disintegration of the Eurozone due to the division of the southern countries, which are planning to take an austerity road and the selected group of northern countries that will elect a better system of fiscalization and will leave out the rest dividing the region in two