Columbia International Affairs Online: Working Papers

CIAO DATE: 11/2009

Financial Crisis Puts Strains on Eurozone Unity

March 2009

Oxford Economics

Abstract

With the Eurozone having slid rapidly into recession and some member countries severely hit by the impact of the credit crunch, there are mounting concerns about a possible debt default by one or more member states, which in turn might threaten the existence of the Eurozone. This article examines the current economic strains within the Euro area and considers whether these factors, which might deter some EU members from joining, could ultimately lead to a breakdown in the euro.