Cultural Conflict As An Invalid Premise For Overcoming The Eurozone Debt Crisis Cover Image

Сукоб култура као погрешна премиса за превазилажење дужничке кризе у еврозони
Cultural Conflict As An Invalid Premise For Overcoming The Eurozone Debt Crisis

Author(s): Ognjen Radonjić
Subject(s): Social Sciences
Published by: Универзитет у Нишу
Keywords: cultural differences; Germany; Greece; austerity measures; consumption

Summary/Abstract: This paper discusses the causes of and ways to overcome the current debt crisis in the eurozone. Although we agree with the German view that the causes of the crisis could be, to a great extent,explained on the basis of cultural differences, we also believe that using cultural conflict asa starting premise for the prescription of remedies for overcoming the crisis is erroneous. It is clear that in the long run the deficitary eurozone economies will have to undertake painful reforms if they intend to persevere. However, this paper argues that in the short run the only way to overcome the crisis is to abandon austerity measuresimposed to deficitary countries on the one hand, and increase the consumption of eurozone surplus economies on the other hand. Only when stability is restored again will there emerge conditions for deficitary countries to make a sharp turn in their economic development strategy – they will have to work hard and significantly increase savings and decrease consumption. If the surplus economies do not forgo the imposed austerity measures in the midst of the crisis, extremist entiments and organizations will flourish, thereby making the future of the eurozone highly uncertain.

  • Issue Year: 2014
  • Issue No: 01
  • Page Range: 127-149
  • Page Count: 23
  • Language: Serbian