Last tango in the Euro Area: Cracks in foundations of the Euro construct

• Main Authors: Radonjić Ognjen, Zec Miodrag
• Format: Article
• Language: English
• Published: Sociological Scientific Society of Serbia 2013-01-01
• Series: Sociologija
• Subjects: Euro Area; euro; crisis; deficit; debts
• Online Access: http://www.doiserbia.nb.rs/img/doi/0038-0318/2013/0038-03181301001R.pdf

The crisis of sovereign debt and banking system in the Euro Area seriously endanger not only economic stability of the Old continent, but also of the world economy as a whole. In this study, we identify causes of the crisis and point towards plausible solutions aiming at a provisional overcoming of the recession. If, on the other hand, central European countries continue to insist on further implementation of deflationary oriented economic measures in peripheral European economies the break-up of the Euro Area is likely. Final, potentially devastating consequences of this possible grim event are at this moment very hard to predict. [Projekat Ministarstva nauke Republike SRbije, br. 179035]