Europe a big concern?

This is an attempt to bring out the essence of the Krugman's column about Europe on 17th March "THE HINDU". I am a great fan of Krugman and once again he gave an interesting article. In this he has compared the response of the US and the Europe to the global financial meltdown. 

Europe has failed in implementing effective fiscal and monetory policies.  On the Fiscal side we can see that  the economists beleive that the Obama's stimulus plan itself is very less and if we compare it with Europe, we can observe that the Europe's efforts are miniscule. When we take the Monetory policy the European Central Bank has been very slow to react and has sheid away from any strong measures to unfreeze credit markets.

 

The question is Why is Europe falling short?

The answer is simple. European Union doesnt have the kind of continentwide instituitions needed to deal with a continentwide crisis. There is no single Government to take the responsibility for the European economy as a whole. Does all these mean that Europe was wrong to let itself become so tightly integrated? Does it also mean that the creation of Euro was a blunder?. It may not be. Because still if the Politicians in Europe start showing more leadership, the entire scene can change.

Would that happen ? We have to wait and watch!!!!!!! Look out for more :)