There are a number of criteria that member of Eurozone should follow to be signed in. Most importantly, the inflation rates of the aspiring member state should not be above 1.5 percentage points. The second factor should be government finance; both annual government deficit and gross government debt. The other important factor is exchange rate of the applicant countries. It is required that, the aspiring member state, must have joined mechanism for two consecutive years. The last and equally crucial criterion is long-term interest rates.
Henceforth, an analysis is drawn of the causes of crisis in the Eurozone. The main crisis in this zone is financial crisis. The crisis is said to have been caused by structural layout of member states. This is because different member states have different level of developments.
Financial needs of all different countries were determined and means of curbing contagion were created for the year 2012. All factors leading to spread of the Eurozone crisis were studied carefully. Emphasis was laid on the change of inflation and interest rates over the years using graphs and charts.
This consequently, helped to establish the effect the crisis on the economy of E.U. In addition, the effect of this Eurozone crisis did spread to other countries. Hence there was a need for careful analysis of the effect of the crisis in other countries other than Greece.
It should be noted that, if the Eurozone crisis is not tackled in the excellent time, there would be minimal hope if any, to realise a stable E.U currency. Therefore, strategic plans are supposed to be put into places to eradicate this crisis for good.
In conclusion, concerted efforts of all stakeholders, citizens, policy makers and politicians in the E.U. are needed to ensure that they adopt effective policies aimed at restoring the financial strength of the counties in the region.