EU chiefs attempt to cool bloc's crisis

By Josh Emberton

This international crisis has spawned a true test to the strength of a recently discussed international institution... the EU. This economic crisis has pust forth a test of whether the members will cooperate or defect. A class exercise that did not end successfully I might add.

The cooperators will have to resist political pressure and interests. They will need to be prepared to bail out weaker members of the EU. It's not the main EU zone countries that are the focus of worrying. But the 16 or so outer nations that make up the EU. Bailing them out is important for the success of this institution. The pressure to defect is strong. Germany is a prime example for just what kind of pressure countries are facing.

For example, Germany 'vowed never to bail out weaker members in return for giving up its strong national currency, the Deutsche mark, German leaders, with elections on the horizon, are now faced with the unpalatable prospect of having to do precisely that: put German money at risk to bail out weaker, less responsible partners.'

There has yet to be a agreed upon approach on just what actions the EU is going to take to defend themselves. 31.1 billion has already been agreed upon to help Eastern Countries but the article states that will not be enough. The key is whether or not protectionism will win out and aid will not reach these Eastern countries.

This poses a problem for the Euro because if nations go into default they may be forced to 'abandon' the currency. This will be the beginning of the end for this international institution, or so this article has suggested. After the fall of the Soviet system, most Eastern European countries turned towards the West for guidance. This crisis will tell them whether or not they may need to rethink that decision.