The current Eurozone problems appear to get even murkier when they are looked at closely. With countries like Ireland and Portugal already under the austerity measures that have been set in place in an attempt to rescue them financially, Greece has also fallen and will soon be followed by Italy whose sovereign debt is at a staggering level. Layoffs have been happening all over Europe on a massive scale. Spain is likely to be the next on the list of countries under scrutiny. But the question one needs to ask is whose list is it anyway? This Eurozone Crisis is out of control but it is under the control of countries like Germany who look to Japan and other emerging countries for financial support.

Ireland had a confidential budget plan set in place that even the electorate were not privy to. Yet details of this plan are being scrutinised by German finance committees. Italy has a new Prime Minister who was a former International advisor for Goldman Sachs. He is an unelected technocrat who makes all the right promises of sacrifices to the right people who are ultimately answering to the markets.

In Greece the plot thickens as a former head of the Central Bank in Greece is made the new Prime Minister again at the request of the markets and the English PM travels to Berlin to sit down with Germany’s chancellor to discuss the Eurozone crisis when her own countrymen do not consider her able to handle it. The whole situation of the Eurozone crisis does also bring into question just what democracy stands for these days.

With 17 countries forming the Eurozone all using the same currency and with Portugal, Ireland, Greece needing financial assistance from Europe and the International Monetary Fund with Italy together as well as Spain on the verge of needing it, the crisis is just getting worse by the minute. The problem does not stop at just threatening the 17 nations who use the Euro as their currency, but the whole of the European Union which is made up of 27 member countries.

The strongest nations in the Eurozone being Germany and France have been there to bail out Ireland, Portugal and Greece but with the banks facing massive losses on the debts that these three countries cannot repay, the question is how long can bail outs been sustained by the financial institutions that are there. Ultimately this state of financial unrest in Europe may spread to other countries such as the United States and this is what is causing the heads of these countries to meet and discuss a way to solve the potentially devastating global financial melt down that is on the horizon.

The fact that the austerity measures set in place in countries like Portugal, Ireland and now Greece by other member states who are working on the bail outs for these countries, are being met with so much resistance by the people, just how much the banks have got to answer for what these people think were bad banking practices of lending out money too riskily. The general public opinion is that the banks should bear the brunt of these losses because it was their mistake in the first place. There are many who think that it is time to pull out of the Euro currency altogether and see this as the only real solution for each individual country that has massive sovereign debts.

Summit after summit is held to deal with the crisis, one in London in April 2009 which was the ‘crisis management event’ and then another G20 summit in Cannes, but the situation does not appear to be getting any better. The summit in London was to discuss and attempt to stop the downward spiral in global growth which was triggered by the bankruptcy of the investment bank Lehman Brothers and the US sub-prime crisis. The G20 summit was to try to stop Europe’s sovereign debt crisis from tipping the scales of the transatlantic economies which would send them into a double dip recession and maybe an eventual global slump.

The G20 summit was a success to a certain degree in so far as a bail out was agreed for Greece, but it all depends on the generosity of countries like China and other nations to agree to supply even more cash to the bail out funds. The European Central Bank has already made it quite clear that they will be pulling away from offering any further financial assistance in Europe’s debt crisis stating that they expect the governments to be responsible for restoring their own financial stability.

The individual coffers of each of the financial institutions concerned whether the European Central Bank, the International Monetary Fund or the European Financial Stability Facility it would appear are running dry. This leaves only one solution to the debt crisis in Europe, and this would be for these financial institutions to join forces in an attempt to rescue the sovereign debt crisis of the countries that are in trouble both now and in the near future.

If this were not to be agreed and negotiated then it looks more and more likely that emerging countries such as China and the Middle East oil producers, all of whom are in a strong position with abundant foreign exchange reserves behind them, are going to be the ones to give financial support to the Eurozone, along with Japan that is. But on what terms with this financial support actually be?