European Financial Crisis Essay Example | Topics and Well Written Essays - 500 words - 1

European Financial Crisis - Essay ExampleSome countries such as Germany have espouse a very firm position on how to handle the situation which does not go puff up with other nations who have a contrary opinion (Hummel, 2013). There has been a slow as soundly as the indecisive response from the European decision-makers. The issues involve a large number of nations with different divergent approaches towards solving the crisis which has contributed to the slow pace of implementing the recommendations. Germany insisted on the adoption of stern actions aimed at reducing the budgetary deficits ground on the postp adeptment of other solutions. The slow response by the leaders allowed the problem to spread from one nation to another and the condition worsened at every instance. Those responsible for the crisis in the financial domain include the commercial banks that have continued to use riskier financial instruments that have led to banks becoming enervated in the sense that they h ave to use their personal funds to finance their huge deficits rather than loaning to other firms as well as households. The crisis is due to the continued problems witnessed in the banking sector across sinless Europe. The banks have been deemed to be susceptible to changes in the financial sector (Doyran, 2011). The political class is responsible for the crisis in the government due to their hard and tough stance towards the coming up with solutions to the crisis. The political leaders ar responsible for the violation of the set rules governing the operations of the European Union.