The Pros and Cons of the Euro Essay

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Boom in Busts: Good or Bad?

There are several pros and cons in the bankruptcy legislation issues. In the current European systems, entrepreneurs forced to file for bankruptcy protection carry business failures and associated debts for years, may be liable to criminal charges and may even be driven to suicide by crushing failure and ongoing debt (Peng, 2014, p. 145). Those consequences and the "fear of failure" rampant in Europe causes some entrepreneurs to abandon their ideas without ever trying to develop them. The "advantage" of the current system, however, favors the creditors because creditors are still supposed to get paid; the money owed to them does have to be simply written off as losses (Peng, 2014, p. 145). The American system, which gives bankrupt entrepreneurs two options -- either complete liquidation and walking away from debt or restructuring to renegotiate with/pay creditors according to court-approved schedules -- also has pros and cons. The obvious "pro" is that entrepreneurs are likelier to try new ideas when the penalties for failure are not so devastating (Peng, 2014, p. 145), creating more opportunities for business. Meanwhile, Donald Trump signifies the most obvious "con" (in more ways than one). Trump is an entrepreneur who has filed four bankruptcies in 25 years in a series of failed businesses, which forced creditors to take less than they were owed and over a longer period of time (Carroll & Youngman, 2015).

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While Trump might deem that "business as usual," it cost his businesses' creditors.

It appears that there is room for bankruptcy reform in Europe, particularly toward something like America's Chapter 11 Bankruptcy, which restructures debt, renegotiates and pays creditors over time (Peng, 2014, p. 145). It is basically done to save a business and to pay creditors, with a court presiding over the process. That method seems to be a humane approach to entrepreneurial ideas that might fail and to creditors who should be paid. This is a hybrid solution that neither lets creditors walk away nor punishes them just for the sake of punishing them. This restructuring approach seems the most logical and likeliest to succeed.

2. Why is Germany a "reluctant hegemon" in the EU?

Germany is the reluctant hegemon because it is a financially powerful European country that is called upon to save several weaker countries in the EU, sometimes repeatedly. A "hegemon" is a powerful entity and Germany is certainly that due to its wise economic policies, leading to its relatively healthy financial situation and historic surplus (Peng, 2014, p. 131). However, as Germany was using wise financial practices, other countries such as Greece were financially failing badly due to: consumer demand increase; a government spending binge; excessive borrowing, budget deficits, huge national debt, unrealistic debt payments; government corruption; a "shadow" economy.....

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