Evaluating the past recent weeks, it is clear that European Union has incurred crisis in economy. This issue has been on increase after it began in Greece. It further spread in Italy, Portugal and Spain. As a result, the economy status in Europe has been ranked as position eight in economies that are around the world.
Currently, focus is placed on Cyprus whose economy is almost failing. Furthermore, this state has not been in position to solve all its bails. Politicians decided to race on Friday, 22 2013 to finalize an agreement that will be able to boost their economy. The reason is because the European Central Bank (ECB) threatened to pull out their support. This could happen if Cyprus could not close the contract in a short duration. In fact, this country is supposed to respond by 25th on Monday to bring their deal to an end (Wearden and Amos, 2013)
This implies that if Cyprus fails to comply by the agreement, ECB will fail to sponsor their banking sector. It is also essential for Cyprus to formulate a plan that will fulfill the needs of other members in European Union. This plan will also enable this state to access international aid funds. This made Cyprus to handle demonstrations that happened at the huge bank at Cyprus. It incorporated reports that could subject the bank that had good performance to lose its value.
According to international Monetary Fund, Cyprus requires to contribute $5.1billion in order to be bailed out and receive $10billion. This situation depicts what political leaders in this state are struggling to overcome. Clearly, the crisis that is taking place in Euro zone cannot be neglected. This is because no economy survives without coordination. If this economy fails, the entire globe will be affected causing panic and unemployment. To handle this crisis, there is need for economies to unite and boost Euro zone.
Wearden, G. and Amos, H. (2013, August 22). Cyprus crisis: politicians race to agree details of ‘plan B’. The Guardian. Retrived from http://www.guardian.co.uk/world/2013/mar/21/cyprus-crisis-race-agree-plan-b
Would you like to get help with academic papers like term papers, research papers, essays and dissertations? We offer professional academic writing services while posting free essays online like the above Political Economics: Sample Essay on Political Economics. If you are interested in any of the services that we offer, contact us now or visit our homepage for more details of our services. You can also read non-related materials and academic paper writing guidelines as well as academic paper samples in different disciplines here.