The paper throws light on the European Union (EU) crisis that hit the union in 2009 and has been a challenge to the different nations who are member states. Although it has been a crisis of historic significant proportions, in 2009 things went beyond control. …
Download file to see previous pages...
The paper tells that the European crisis is an ongoing financial crisis that has led to involvement of third parties to help in the situation. The crisis began in 2009 with increased fears from investors attributed to by the rising government debt levels around the world. This was followed by an era of downgrading of government debt in a couple of European states. The issue became worse in 2010 leading to actions of rescue. Meetings have been held by the leaders in the project to come up with possible solutions. In projects, leadership should play a key role and this is the case with the European Union however other factors let it down. According to Olsson, there are different things that the leaders have been agreeing on for instance creation of a common fiscal union and balanced budget management in each state. In an issue like this one, it becomes necessary to look at the causes of the same before going deep to get solutions and recommendations. Although the European currency has remained stable despite the shock, sovereign debt has raised substantially in a few eurozone countries. In the crisis countries that are most affected are Greece, Ireland, and Portugal, which collectively contribute 6 percent of the eurozone’s gross domestic product. Members pinpointed to contribute to the evolution of the crisis are Greece, Ireland, and Portugal. From the three states, the crisis is noted to have spread to Italy, Spain, Belgium, France, and the United Kingdom. ...
In projects, leadership should play a key role and this is the case with the European Union however other factors let it down. According to Olsson (2009), there are different things that the leaders have been agreeing on for instance creation of a common fiscal union and balanced budget management in each state. In an issue like this one, it becomes necessary to look at the causes of the same before going deep to get solutions and recommendations. Although the European currency has remained stable despite the shock, sovereign debt has raised substantially in a few eurozone countries. In the crisis countries that are most affected are Greece, Ireland, and Portugal, which collectively contribute 6 percent of the eurozone’s gross domestic product (Olsson, 2009, p.23-26). Analysis of the European Crisis Complex factors have resulted to the European sovereign debt crisis including globalization of finance; easy credit conditions between 2002 and 2008 that encouraged much borrowing; trade imbalances in the international markets; slow economic growth after 2008; fiscal policy challenges particularly high entitlement spending; and approaches used by nations to bailout banking industries challenged (Chrisdoulaki, 2010).The dawn of the crisis was in 2000 to 2007 where the global pool of fixed income securities increased. This increased savings in individual states as developing countries entered global capital markets. Different countries in the European were affected by these swings in the global economy that had begun in United States of America. Some borrowed and invested in different ways for instance Ireland, one of the leading contributors of the crisis, lent the money to property developers through its
...Download file to see next pagesRead More
Cite this document
(“EU Crisis and its consequences Essay Example | Topics and Well Written Essays - 4250 words”, n.d.)
Retrieved from https://studentshare.org/business/1395780-eu-crisis-and-its-consequences
(EU Crisis and Its Consequences Essay Example | Topics and Well Written Essays - 4250 Words)
“EU Crisis and Its Consequences Essay Example | Topics and Well Written Essays - 4250 Words”, n.d. https://studentshare.org/business/1395780-eu-crisis-and-its-consequences.
The Euro Zone is composed of a single monetary market and heterogeneous countries. The Greek crisis signaled a crisis of the entire Euro Zone. Chronological review of the crisis unfolding is demonstrated in the paper. Origins of the crisis lay in the Greek public debt. Politically, an exit by Greece at that time could imply a disaster for the EU.
Frustrations of farmers getting demonstrated through blockage of border crossings, highways or ports, clearly indicates that Greeks have become distressed having no intentions to let go (Poggioli). Uncontrolled expenditure, inexpensive loans and failure to execute monetary transformations over a couple of years has left Greece in a very poor condition when the worldwide financial recession had hit.
Just as the world economy was showing some signs of recovery from the worst recession in nearly a century, the global economy once again got hit by the Euro debt crisis. Even with austerity measures in place, growth prospects within the Euro zone has been downgraded to 1.5 percent this year.
In this case, Germany is one of the two members determining the fate of EU, since it represents 27.15% of the ESM capital contribution, thus their decision was substantial (Butler, 1). Nevertheless, their decision supported ESM and this made the assertion that EU had a chance to take over in the future in order to deal with the current crisis.
EVALUATE THE MAIN EU REGULATORY REACTIONS TO THE FINANCIAL CRISIS INCLUDING THE CHANGES TO THE EU REGULATORY PROCESS FOR FINANCIAL SERVICES (Author’s name) (Institutional Affiliation) Introduction The financial crisis that rocked the European Union from 2007-2009 affected the economies largely because the mega financial institutions within Europe were operating in a similar business model to that of the United States prior to the crisis.
The EU is built with a series of treaties made with its different member states. Historically, the EU was formed to promote peace and economic prosperity especially in Europe after the occurrence of World War II. Since the beginning of the 1950s, the integration of Europe has significantly augmented to entail conducting various financial activities like developing a single market in which goods, capital and people moves freely, a common trade policy, an ordinary agriculture policy, environmental policy and common currency (Euro) which is being used by 17 member states (Archick, 2013).
This essay mainly focuses on identifying of all the preconditions, leading to the crisis, and it also determines negative tendencies in the economies of affected countries. As it is shown in the essay, the EU economic crisis not only affected Europe but was a global issue. Several features of this financial crisis are identified in the essay.
Secondly structural constraints associated with enlargement have forced the member countries to adopt more flexible ways of adjustment. The rapid expansion of the EU in the recent years after the collapse of the former Soviet bloc has created a series of problems.
As part of the enlargement process for the now 25-member European Union, its membership is expected to expand to 30 or 35 by 2020, with the western Balkan countries as the final joiners (Batora, 2007). The idea may be hinged on the dictum that there is strength in numbers. This actually gives expression to the founding philosophy of EU.
The citizens of EU derive some kind of benefit from the EU budget. The member states have approved which actions should be financed from the common budget. It is agreed that Taxpayers' money must be utilised in building of roads, research financing, environment cleaning, entire Europe to be inhabited, assure safe food and back up a number of other causes either directly or indirectly.
9 Pages(2250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic EU Crisis and its consequences for FREE!