Euro Zone. Decision Making Process Assignment Example | Topics and Well Written Essays - 3000 words

Euro Zone. Decision Making Process - Assignment Example The European Central Bank is responsible for undertaking monetary policy of the region zone. It is governed by the President and the board comprising of the heads of the central banks of nations. To keep inflation in control accounts for the principle task of the European Central Bank. Without any common representation, fiscal policies and governance of the current union and other decisions are take in close cooperation and association between member nations in the Euro group. It accounts for making the political decisions with regards to the euro and the European Union. Comprising of finance ministers of member states the Euro Group, it also includes national leaders in the decision making when need arises during emergency situations. The project discusses the range of events happening in the Eurozone and steps taken to control them through effective decision making and controlling. Reacting late to the global financial meltdown, the Eurozone has suffered significant losses arising out of rising public debts and unsustainable deficits in the peripheral economies. Different national leaders have responded to the crisis differently. The project analyses the decision making processes used by leaders in countering with the crisis. This is done in terms of the strategies, cultures, psychology and also the different leadership styles applied in the process. Leadership issues concerning the corporate social responsibilities, ethical conducts and leadership styles are analysed in the project. Lastly the effects that these issues could raise on the future of Eurozone are put to analysis. Recent Events- Eurozone Crisis The euro which was introduced in 2002 as the universal currency of the entire European Union was able to c onsolidate a huge trading area across the world and was instrumental in rivalling the dollar for attaining global supremacy. However, along with the accumulation of unsustainable and massive deficits and rising public debt levels in the numerous peripheral economies the viability of the Eurozone was greatly threatened. This triggered the immense debt crisis of the Eurozone. The crisis is also a vivid depiction of the economic interdependence of the European Union coupled with the lack of political integration within the system which was much needed for providing a coordinated monetary and fiscal stimulus to the crisis. France and Germany showed their reluctant efforts to step inside the political vacuum created out of the crisis. On the other hand, even the wealthiest members of the Eurozone called upon the weaker states to implement rigorous austerity measures for dealing with the crisis. However, this was not successful as it led to the great political unrest and crumbled governme nts of countries like Italy, Spain, Portugal and Greece. In spite of many measures to rescue the Euro agreed upon by the leaders of Eurozone volatility prevailing in the markets continued to persist consequently raising questions about the future of the euro (Grauwe, 2010). Analysts have noted that the originally powerful members of the European Union Community like Germany had been initiative and eager to develop a large and competitive Eurozone. Because of this initiative they had also allowed a large number of countries to adopt the euro despite the fact they were not fulfilling the required criteria outlined by Maastricht. However, today all of