Why was the EU set up in such a way that a small country like Greece can cause a financial crisis?

There problems started when the abolished the Drachma and replaced it with the Euro|||First, all European countries are "small" in global terms. And most are similar in size to Greece (by population, geographically, economically, or whatever). The EU was founded on the principle of equality, not domination of smaller countries by bigger ones.





Secondly, the problem here is with the euro, not the EU. The euro:


(1) allowed Greece to borrow at lower costs than it otherwise could, so there was no pressure to keep spending in check


(2) increased the cost of living in Greece


(3) decreased the Greek government's ability to adjust its economic policies, since the countries have to act in tandem.





What people have now realized is that for the eurozone to survive, it will must have common economic regulation.|||It is not the EU as such, but the Euro.





Greece needs to dump the Euro and return to a floating Drachma, this way it could just trade its way out of the problems.





The trouble is would a Socialist Governement take a Capitalist move like that.





After all it would be putting its Family (Capitalism) above the State (Socialism)|||The Euro was a disaster from the beginning,valuation of the Euro varied from country to country and the central fund did not perceive the potential danger of these confounding variables,in other words,the Euro had no fixed standard so if one country fails it creates a domino effect so the E.U is panicking as there are more than one domino,so an unbalanced currency bloc is not as safe as the pound of the dollar and they are having problems.


Another thing,the E.U wasting money on a bureaucrats fools paradise,it is too big to be administered properly,far too many unqualified people are in positions of power and their input is damaging legal systems,immigrant system et al,this gravy train will have to pull into the station,down size,give power back to member countries,simplify complex rulings and start cutting salaries to a realistic level.


The concept of the E.U,came from the mind of Arthur C Clarke who created the United States of Europe as a concept for a sci fi novel and of course some idiot thought this a good idea,wrong.|||The problem's not with the EU, but with the Euro. The idea of a common currency is that everyone sticks to the rules. Instead, Greece, Ireland and Portugal decided to run up huge budget deficits (that means they spent a lot more than they raised in tax and borrowed the rest from central funds). There's a chance that Ireland and Portugal could dig their way out by taxing their richer citizens and curbing spending. Greece ain't going to get there unless it starts taxing its shipping tycoons in a big way.





If they can't pay their debts, lets send the bailiff's in. Italy can repossess Corfu and Britain can have the Acropolis (it will give us somewhere to keep our marbles). I'm sure the Germans could run the Dodecanese at a profit.|||Greece is not small. The problem is big about the size of Argentina plus Russia.And Greece was not the country in the Lome convention. It was a member through enlargement. It passed the test. And Greece was not the source of the problem.The US was.|||I'm too far removed from the situation to contribute much to the question...other than to comment...if Greece, Spain, Portugal etc are chin deep in the s##t.....how are other member states like Bulgaria, Cyprus, Malta, Romania, etc getting on?|||Greece should never have qualified as a member. If you invite a drunk to live you with, you shouldn't be surprised when he trashes the house.|||twa