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

European Financial Crisis - Essay Example Some countries such as Germany have adopted a very firm position on how to handle the situation which does not go well with other nations who have a contrary opinion (Hummel, 2013). There has been a slow as well 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 based on the postponement 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 sector include the commercial banks that have continued to use riskier financial instruments that have led to banks becoming weak in the sense that they have to use their personal funds to finance their huge deficits rather than lending to other firms as well as households. The crisis is due to the continued problems witnessed in the banking sector across entire 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 are responsible for the violation of the set rules governing the operations of the European Union.