UNITY IN DIVERSITY

Euro-zone crisis

and possible solutions

A glance at the roots of the crisis

From 2001 to 2006 the United States fed a huge economic

bubble based on a careless investment policy that

exploded in 2008.

From that time on this crisis expanded all over the world

and reached even the euro-zone.

Up to now all the efforts made to contain the

consequences do not seem to work.

“It’s important this country is at

the forefront of fighting the crisis

in Europe, being strict for

southern Europe but willing to

help if they do what’s

needed.”

Mark Rutte

“Not spending more than you

collect, it’s astonishing that this

simple fact leads to such

debates.”

Angela Merkel“If the euro fails, then Europe fails.”

Mario Monti

“Developments this summer have

indicated we are in a dangerous

new phase.”

Cristhine Legarde

“We want European

cooperation. We don’t

want to be in euro.”

David Cameron

The crisis map 2011-2012

Euro-zone debtheats up and fears grow thatthe euro-zone

will break apart. Assurances fromGermany calmdown world markets.

Markets fall fearingtransatlanticbanking contagion; the ECB quiets marketsdepositing 1.4

trillion into the banking system.

Incomes in richcountriesbecome flat, Europeanunemploymentrises the China

estimates ofgrowth.

No solutions forEurope unlessGermanyunderwrites

euro-zone debt, so that world markets recoil. Inverstors pull back from risks.

“We believe it is behind,

but we are not yet over

the crisis.” Mario Draghi

President of the European Central Bank

We were fully confident that there was political will

of European States and leaders to overcome the

crisis. It is true that it is an unprecedented crisis but it

is also true that there is a strong will to do everything

necessary to sustain the currency. We have to find

solutions, and certainly it is a good decision to do everything possible to avoid a disorderly default.

The governement can’t pay the bills; social discontent explodes

The country exits from the euro zone

Euro-zone banks holding this debtare hard hit

Credit crunch, has slowedEuropean growth; unemploymentrises, borrowing costs skyrocket

Money flows out of other weakEuropean economies; countries

can’t find financing and default or pull out the euro

Market unrest; a collapse ofeconomic growth around Europe

leads to a global recession

Euro-zone banks holding a bad nation debtsuffer, but the EU and strong countries like

Germany help to recapitalize banks. Stability is restored to the financial system

Funds not spent on it are used to supportother at-risk countries

Germany leads the euro zone towards a greater fiscal unity

The financial market stabilize; Europe returnsto normal growth

The world avoids a serious recession

Worst possible scenario Best possible scenario

In case of a European country default

“The two strongest nations in

the euro-zone (Germany

and France) don’t yet have

the stomach to save the

common currency. The ECB

doesn’t have the firepower

to stem the crisis.”

“While the euro enjoys

widespread support,

spending more money to

save it doesn’t. Residents of

rich countries like Germany

resent seeing their hard-

earned cash diverted to

rescue other states.”

From the “TIME”…

IDEASFOR SAVING

EUROPE

OUR PROPOSALS

“Iceland, for example, in

2010 nationalised all its

private banks, through a

popular referendum.”

BANK DEPRIVATIZATION

Currency issue cannot be

handled by private banks

(ECB, FED). A supranational

organism should control

the issue to prevent

conflicts of interest

between private investors.

NEW REGULATIONS

New laws and rules are necessary

• to control the actions of the bank, for a better

administartion of markets and international

exchanges• to reduce the free action of the bank about risky

investment,and in particular about

production/acquisition of “toxic titles”

• to regulate the operation of rating agency and

possible private agreement with the banks.

NEW GOVERNING CLASS

We need a new governing class disposed to

get involved in the EU rights; people chosen by

population that aren’t prone to self-interest’s

conflict.

OUTLAY OPTIMIZATION

We need laws directed to struggle tax evasion and to

optimize the national expences in order to avoid a

worsening of public debt. Cutting the costs of politics

and unnecessary or avoidable expences is a solution

but without hitting Education and Healthcare, basis of

a civilized country.

Europe must be more

united and be a real

single state, excluding

every kind of

particularism and

selfishness among

nations.

In the nineteenth

century Giuseppe

Mazzini (an Italian

politician and

patriot), already

foresaw a united

Europe, and his

dream was fulfilled a

century later, thanks

to the EU.

Notwithstanding the EU is currently undergoing

grave economic difficulties and considerable

social unrest

the Norwegian Nobel Committee has decided that

the Nobel Peace Prize for 2012 is to be awarded to

the European Union (EU).

The union and its forerunners have for over six

decades contributed to the advancement of

peace and reconciliation, democracy and human

rights in Europe.

The work of the EU represents “Fraternity between

nations”.

In the end, the only way to save the euro could be a

new euro-zone to emerge, one in which its

politicians and citizens are more willing to sacrifice

their own interests for the greater community – to

make the dream of a United Europe more than a

dream.