Crisis Case

I would seek to acquire to have a company outside of the European Union, the Eurozone is an economic and monetary union of seventeen countries such as France, Slovakia, Greece, and others (Eurozone Crisis..,2013).This crisis had an horrible impact on Europe’s international trade also economic value of their currency, the Euro. It’s interesting fact is a few of these countries are responsible for the debt because they borrowed and spent too much money and their negligence for making payments thus caused the horrible Eurozone crisis. Moreover, one country affected by the crisis is Spain, it’s debt was low prior to the crisis but, it’s property bubble was why Spain needed to get several bailout packages. In 2011 the government attempt to restore Spain economic issues failed, the government raised taxes and made in cuts in the spending budget. Unfortunately, the public didn’t agree with the changes thus riots and protests occurred; this was evidence that Spain need more financial support to overcome its situation. Also overall, Spain’s debt to GDP could rise to 90% in 2013(Eurozone Crisis.., 2013). The Euro crisis can’t be fix overnight of course but, I wouldn’t desire to risk starting an company inside the Eurozone based on all turmoil that’s still occurring. There are disadvantages but, more advantages to support my decision such as avoiding tight credit conditions or restrictive fiscal policies (Euro zone Busniess,2013).

It would be overwhelming challenging to maintain an successful business inside the EU, other issues such as the limited consumer purchasing power, the high labor cost or social cost and in certain EU countries such as Italy or German it would be challenge to have competitive edge. The property bubble occurring in a few countries, the large debt, corruption, and structural dilemmas overall are red flags for an business owner so, seeking an country outside the EU without all the clutter of issues is necessary option.