European Economic Evironment

In our last class, we discussed the the global financial crisis and its effect on Europe.  Since the class, I have been considering what we talked about.  We noted that the Americans had a very offensive approach to dealing with the crisis.  Europe, however, took a more defensive stance.  I was a little cloudy on some of the policies they enacted to cope with the problems, but I believe that it is apparent that the American economy, as a whole, was able to return closer to normalcy than the European Union.

Culturally, there is a dividing line between Northern and Souther Europe.  Unsurprisingly, this dividing line became more apparent during the financial crisis.  Southern nations struggled while Northern countries, although not flourishing, fared better than their Southern counterparts.  As European sentiment grows more nationalistic, it will be interesting to witness how this divide will transfer into the European Union.

Britain leaving the European Union could be a catalyst in this.  The United Kingdom is a huge player in the economy of the European Union.  By leaving the organization, other countries in the European Union may find it difficult to compete with the UK while being tied to the European Union.  For instance, Germany and France might feel hindered by the economies of Greece, Italy, or Spain.  In order to reach their full economic potential, politicians might propose to leave the Union.  Regardless of the outcome, there is no doubt that the financial crisis will highlight the differences between Northern and Southern Europe.

So far, I have travelled to Spain and Italy, both with similar cultures, and, from what I could see, a similar economic situation.  I have been to France, Belgium, and the Netherlands in Northern Europe, which collectively seem to be doing better than their Southern union-members.