Albeit, experiencing volatility in the financial market, the EZ contains an institutional capacity to address near term predicaments to ensure long-term survival. Moreover, the EZ is working towards protecting the legitimacy of decision-making entities at the top i.e. the ECB (European Central Bank) in order to limit future crises among the sovereigns. The debt crisis that broke up in Greece and subsequent signals that Portugal, Italy, Ireland, and Spain, were also deficient of sustainable monetary position, espoused the rising uncertainty about EZ’s future. In effect, markets started demanding lofty interest rates and risk premiums in fear of possible defaults. Nonetheless, due to the stagnation of the EZ economy in the 2nd quarter of 2011, the debt crisis amplified, generating problems for Europe and the entire global economy. One of the primary causes of the EZ problems emanated from the flaws in the structure of the currency union, with shared monetary policy, but abandoning the member countries to make fiscal policies. Such a corollary aggravated a feeble enforcement of fiscal control and discipline facilitating mounting public debts. This meant that the member states could experience intricacies in inflating their course from huge public debt in order to have competitive exports. The manner in which this problem was solved has contributed to my strong supposition that the
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