THE EURO AS THE COMMON CURRENCY: A BOON OR A CURSE FOR EUROPE?

Abstract

The former Greek Finance Minister, Yanis Varoufakis, commented on Brexit as an economic deal that has brought: "The worst threat for the European Union...slow deconstruction...it's going to become irrelevant." As the, unfortunate, refugee crisis has become a pebble in the shoe of the Balkan states and the East European countries with the abrupt and monstrous invasion by the Russian Federation in the territory of Ukraine, the European Union appears incapable in garnering collective support from all the member states to provide humanitarian aid to the refugees and moreover, coerce the Russian Federation to espouse the diplomatic means to resolve the issues. Some member states can’t afford to stand against the Russian Federation because of their personal interests vested in the strategic trade partnership and comprehensive defense cooperation with the Vladimir Putin government. Therefore, it becomes significant to asses and inquest the viability and practicality of the Euro as the common currency of Europe in the European Union’s customs union and single trade. Was it the sanest of the decisions? Cris Shore, the author of the article ‘Britain, Brexit and Euroscepticism’ explained that the European Union had famous democratic deficit. The progressives from the post-War era came together to form the alliance but didn’t know what the general public desired. Whereby, the invention of a single currency created higher risks of economic recession amongst the member states as this political grouping was devised through an economic strategy. With the fall of an external economic shock on the members, Greece went bankrupt and its burrowing started scrambling for skyrocketed heights. As a result, there were no more public spending, pensions got suspended and the State, as an entire entity, got shrunk. While, the European Union came out as an unpopular project. This article tries to establish further debate upon the feasibility of a common currency for an entire geographical continent of Europe.