The Eurozone comprises of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Established in 1999, these countries have adopted a common currency called the ‘Euro’. ‘Euro’ itself was introduced as a single currency no later than 2002. By sharing a common currency, the countries follow common economic and fiscal policies. Monetary policy decisions are taken by the independent European Central Bank , also known as the ECB. Entry to join the eurozone is controlled by the so-called Eurogroup.
A small focus on what Austerity is about and how Portugal is facing hard times after Greece and Ireland. Different economists have different analysis to make but traditional theories remain intact and this world meltdown seem to be questioning some theoretical approaches towards a more practical world.