The Euro Area Crisis

Abstract

The present paper points out the fact that the potential economic growth of the euro area has been hindered by the crisis still existing within the economies of these states. In fact, we must specify that the current euro area crisis tends to become even more severe, especially due to the lack of political measures. Besides the economic-financial crisis, there is also a crisis of confidence, fueled by the negative forecast, with significant consequences on the global economy. The conclusion is that the survival of this area is dependent on the existence of public finance stabilization programs, budgetary commitments and most importantly, the achievement of a development plan of the European and Monetary Union.