Discuss whether the Euro zone crisis has had an effect on the European Essay

Discuss whether the Euro zone crisis has had an effect on the European integration project - Essay Example Bank of England referred this crisis as â€Å"the most serious financial crisis at least since the 1930s, if not ever,† in October 2011† (Kenny, 2012). This paper explores the history of European integration first and then explores whether Eurozone crisis has any effect on European integration. History of European Integration Second World War has changed the history of Europe immensely. In fact, Europe has been divided into distinctive ideological segments as a result of WW2. Eastern Europe came under the control of communist regime whereas Western Europe was occupied by democratic regimes or capitalist countries after WW2. Moreover, one portion of Germany (East) came under communism whereas another portion of it came under capitalism immediately after WW2. It should be noted that capitalism and communism would never travel in parallel directions. So, tensions between communist East and capitalist West of Europe started to intensify after Second World War. Prominent poli ticians and scholars of Europe such as Winston Churchill realised that the progress of Europe would never be possible if one part of it function in one direction and other part in opposite direction. Thus, the call for regional integration started immediately after the end of WW2. Moreover, the theories of Federalism and Functionalism, put forward by prominent scholars gave momentum to the integration process of Europe. â€Å"The term â€Å"regional integration† means combining parts into a whole, according to the Oxford Advanced Learners Dictionary† (Dosenrode, 2010, p.4). Europe was functioning as parts after WW2. For example, the whole Germany was functioning as East and West under two contrasting political ideologies. The fall of Soviet Union during the latter parts of twentieth century gave momentum to the regional integration process in Europe. The introduction of principles such as perestroika and glasnost by former Soviet leader Gorbachev helped the Soviet Unio n and other communist countries to expel communism from their territories. Majority of the Eastern European communist countries including East Germany embraced capitalism or democracy after the fall of communism in Soviet Union. The Berlin Wall has been destroyed and the two Germanies became united once again. All these incidents encouraged the regional integration process in Europe in one way or another. Moreover, the progress of Untied States towards prosperity made the European leaders aware of the necessities of a European Union (EU) to enhance their potentials for economic progress. The first pillar of EU was constructed in 1951 in the form of European Coal and Steel Community (ECSC) by the six countries; Belgium, France, West Germany, Italy, Luxembourg, and Netherlands. Since then, a series of incidents happened in the integration process of Europe. â€Å"The EEC Treaty, signed in Rome in 1957, brings together France, Germany, Italy and the Benelux countries in a community (E EC) whose aim is to achieve integration via trade with a view to economic expansion† (Treaty establishing the European Economic Community, EEC Treaty - original text, 2010). The 1960 Stockholm Convention resulted in the formation of European Free Trade Association (EFTA) (Convention Establishing The European Free Tra