Accountability, Representation and Control and the Euro crisis Essay

Accountability, Representation and Control and the Euro crisis - Essay ExampleSome of the common perspectives on the crisis paint a picture that the weaknesses in the accountability processes, compromised systems of control, and poor representation are at the core of the Euro crisis (Hopwood, 2009, p. 797). Those who hold onto this view campaign that revamping the structural basis of the three features is fundamental to resolving the crisis. The banking sector, the government spending practices, and the corporate world carry on some of the areas that oblige received significant focus by analysts of the Euro crisis. Poor controls feature in the style in which governments have failed to put in place regulatory systems to stem bad spending practices, which make it to increased deficits that imperil economical growth. Weak accountability systems encouraged unethical accounting practices that scourgeened the weaken of the banking sector in the region attracting large amounts of b ailouts that burdened the taxpayers. The genesis of the Euro crisis stems from failure of some member countrys to shape their sovereign debt. The sovereign debt, which had been capped at the 60 percent of the gross domestic product GDP, determines the state of stability of the economic stability of the member states (Arnold, 2012). Proposals for austerity measures, which have been suggested by countries like Germany have incurred the irritation of some of the most affected countries such as Greece and Poland. The central thinking of the affected countries is that austerity measures leave behind stunt economic growth and leading to states of economic instability, which would expose the affected countries to more damage from the systems. It is eventful to consider some of the reasons of the economic crisis in terms of the structural germ of their causes. At the bottom of the debt crisis is the subscribe to for stronger and reliable regulatory frameworks that would enable account ability, control, and representation in order to shield the Eurozone from the adverse consequences of the crisis. Pursuit of economic self-interest among the Eurozone member states remains one of the challenges facing efforts of addressing the Euro crisis (Lynn, 2011, p. 31). Entry into the Eurozone necessarily required member countries to forswear some control of their economic structures to a centralized operational framework without mortgaging their sense of autonomy. Further, the challenge also involves the question of competition, which drove some countries to practice subjective accounting practices with the intention of protecting certain self-interests. gibe to some economic policies, the Euro crisis would have been averted had the member countries adjusted their accounting policies and operations in ways that sweep the aspect of representation as understood within the framework of fair trading practices (Arestis, 2012). Such structures would have provided the necessary points of economic convergence, which would have shielded the countries from the threats posed by the crisis. Much of the focus of the Euro crisis has involved incapable accounting practices in the corporate world (Knight, 2012, p. 13). A number of banks, for instance, presented unqualified audit reports, which gave hints of growth establish on misrepresentation of certain disclosures on assets and mortgages. Such banks later encountered numerous operational challenges that led to their beingness declared bankrupt. On this account, many banking institutions led to massive government expenditure in terms of bailouts, which were necessitated by the fact that failure to put in place appropriate regulatory mechanisms would expose the banking sector to the threat of collapse, which would then touch of a series of economic challenges that