Greece has long lived beyond its means and, spent much of the last two centuries, defaulting

on its debts. Joining the euro was meant to put an end to all that. However, it merely seems to have exacerbated its problems. The European Union, at first, refused to allow the country to join the euro when the new currency started in 1999. The speculative debate revolving around Greece leaving the Euro is not new. The debate actually started in 2002, when Greece adopted the currency. Quite simply, its debts were too high and inflation was out of control. Many predicted that if a recession hit Europe, Greece would incur a lot of financial damage and their economy would collapse. If the Eurozone is characterized by a diverse area,

leading to different situations, I would tend to think that euro is a symbol of European identity.

I)The problem with Euro: The Euro zone's area A) The Euro zone, a diverse area Economic and Monetary Union (EMU) represents a major step in the integration of EU economies. It involves the coordination of economic and fiscal policies, a common monetary policy, and a common currency, the euro. There are 27 EU Member States but only seventeen countries have

adopted the euro. Together, these countries make up the euro area So, like any other major currency, support for the euro relies on fiscal responsibility. But, unlike any other major currency, the euro is issued by 17 autonomous countries largely beyond the reach of European Union rules. A common monetary policy involves a common interest rate for the whole eurozone area. Or it's inappropriate for regions which are growing much faster or much slower than the Eurozone average. With a common monetary policy it is important to have similar levels of national debt, otherwise countries may struggle to attract enough buyers of national debt. This is a growing problem for many Mediterranean countries like Italy, Greece and Spain who have large national debts. For example Italy's national debt is over 100% of GDP. There are seventeen separate countries with different economic performances and languages. Consequently it's hard to form a monetary union. It works in the United States because of the common language and portability of pensions etc. across a large geographical area. If a state in the US like New York was in recession, it is argued that people in New York could move to New England and get a job. However, in the Eurozone this is much more difficult; it involves moving country and possibly learning a new language. There are more barriers to the movement of labour and capital within a diverse region like Europe. Morever, governments were obliged through a stability pact to keep to the Maastricht criteria for perpetuity, no matter what their individual economic circumstances dictate. As a result, some countries would be unable to devalue to boost exports, to borrow more to boost job creation or cut taxes to threaten their deficit. All the EU countries have different cycles or are at

different stages in their cycles an one central bank cannot set inflation at the appropriate level for each member state or devaluation is not an option. So, economically strong and stable countries have to cooperate in the field of economic policy with other, weaker, countries, which are more tolerant to higher inflation. Indeed, Greece and many other countries in the Eurozone and around the world are insolvent. The southern Eurozone countries are EU520 billion in debt to Germany alone, and about the same amount to other countries.

B) Greece example Across Europe, fiscal problems in Greece could threaten the credibility of the Eurozone and set off similar debt crises in other weak European economies. "The Greece example is putting us under great, great pressures," years." It is first necessary to summarize what actually happened with Greece. After the adoption of the euro as their currency, the government of Greece indulged in high borrowing in order to cater to the increasing public spending. However, the lack of income tax received from the public was not enough to balance their budget. Tax evasion, among other things, is viewed as being the primary cause of the economic downfall of Greece. German Chancellor Angela Merkel told AFP. "The euro is in a very difficult phase for the coming

Without a doubt, having the euro as the main currency has numerous advantages for Greece. Controlled transaction costs, exchange rate certainty, affiliation and backing of the strong European countries and transparency with healthy competition being some of the obvious benefits gained by the economies who have the euro as their currency. Without the euro Greece would be able to devaluate its currency, reduce government expenses and promote tourism and export, which would stimulate the economy by increasing the flow of revenue in the country. The debate concerning the Greek debt crisis and what to do about carry on. The question is whether the 17 countries that share the European Union's (EU) currency can force a rogue member with a weak economy to take drastic measures to cut its budget deficit without calling in the International Monetary Fund (IMF) or sparking social unrest. In my opinion, the problem is not Greek, because if it was, there wouldn't be all these discussion and debate about it.The problem is systemic, it lies in the structural flaws of the euro, in the poorly regulated banking sector and in the lack of a serious long-term investment plan for regional growth.

II)

The Euro: a symbol of European identity

The euro was created because a single currency offers

many advantages and benefits over the previous situation where each Member State had its own currency. Not only are fluctuation risks and exchange costs eliminated and the single market strengthened, but the euro also means closer co-operation among Member States for a stable currency and economy to the benefit of us all. The euro is one of the strongest tangible symbols of European integration and the shared values of Europe, the European nations and Europeans themselves. A) Real advantages are offer

When a group of individual currencies is replaced by a single currency, as the Deutsche mark, French franc, Italian lira, Spanish peseta, and others were by the euro, there are two primary benefits: lower transaction costs and greater transparency. The benefits of the euro are diverse and are felt on different scales, from individuals and businesses to whole economies. They include: A single currency within the Eurozone area. A Common Monetary Policy. Interest Rates are set for the whole Eurozone area. Growth and stability Pact. Limits on government borrowing, national debt and fiscal policy. However, in practice member countries have often violated the strict limits on government borrowing. More choice and stable prices for consumers and citizens Greater security and more opportunities for businesses and markets Improved economic stability and growth More integrated financial markets A stronger presence for the EU in the global economy A tangible sign of a European identity

The myriad benefits of the euro in the global economy arise from the size of the euro area. This makes the euro an attractive currency for other countries and trading blocs in the global economy. The euro is now the second most important world currency after the US dollar.

B) Put an end to Euro will lead indubitably to dramatic consequences Abandoning the Euro will lead to a lot of disadvantages: Countries debt would turn into foreign currency debt. Devaluation of currency would automatically increase debt burden. Increase in import costs, leading to inflation and

further deterioration of the people's standard of living. A lack of credibility leading to difficulty in conducting business. If we take the Greece example, put an end to euro would result in being in a much weaker state than before, with little or no chances of possibly recovering through switching of currency to Drachma.