StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

European crisis - Essay Example

Comments (0) Cite this document
Summary
[Instructor Name] European Crisis European crisis refers to the increasing budget deficit in the European states due to debt crisis. The crisis is most prominent in a few eurozone countries but its effects are being witnessed in the Europe as a whole…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.2% of users find it useful
European crisis
Read Text Preview

Extract of sample "European crisis"

European Crisis European crisis refers to the increasing budget deficit in the European s due todebt crisis. The crisis is most prominent in a few eurozone countries but its effects are being witnessed in the Europe as a whole. As the crisis is reaching a higher point, it is affecting countries other than the European countries as well. The following paper would take three recent articles into consideration which are somehow related to the European crisis and it would be evaluated how the concepts presented in the article relate to the concepts of macro-economics. The first article is taken from BBC.com and it was last updated on 21 May 2010 when the European crisis was still in its initial stages. The article deals with the initial steps taken by the European Union’s economic taskforce in order to deal with the crisis. There had been a lot of criticism that Europe is not responding to the crisis and the steps taken to deal with the crisis would not suffice. After the criticism, the economic task forces of the EU decided to do more efficiently in the future. The objectives in order to deal with the crisis were developed and it was said that all the member countries would agree with the objectives. Herman Van Rompuy, European Council president said that the member states had agreed to the following objectives; greater budgetary discipline, to look for ways to reduce the divergences in competitiveness between member states, to establish an effective economic crisis management mechanism and to strengthen economic governance to be able to act quicker and in a more coordinated and efficient manner to deal with any future economic crisis (BBC.com, 2011). The article relates to macroeconomics because it discusses the objectives which are regulatory. The first objective is about budgetary discipline which is exclusively related to macroeconomics. Budgetary discipline is the development of fiscal policy of a country in such a manner that it controls the deficit in the budget. Fiscal policy is a macroeconomic concept that helps the regulatory bodies in regulating the annual budgets. The objectives also include strengthening of economic governance which is also a concept of macroeconomics. Economic governance includes development of such policies that help a country in controlling its economy and in bringing it out of crisis. The tools used in economic governance include fiscal policy and monetary policy. The second article is written by James Lamont and Henny Sender and it was last updated on 22 November 2011. Since the article is recent therefore it presents a better view of the current state of the European crisis. The article is about the impact of the crisis on the Asian markets. According to the article, the crisis has pummeled global markets and it is now threatening to spill over into the Asian banking sector as the lenders of the region take into account their own exposure to the ongoing crisis. The article presents that the Asian borrowers will be affected by the European crisis because they are linked with it either directly or indirectly. Following is an excerpt from the article, “Domestic interest rates are high after 13 successive rises in the benchmark lending rates by the central bank. Foreign capital is retreating to the core in Europe and the US, restricting the ability of Indian companies to raise capital through loans or bonds.” Thus, the crisis will impact Asian borrowers because the borrowers depended upon the European banks significantly for their financial needs. Due to the increase in the domestic interest rates, it has become difficult for the Asian borrowers to acquire financial assistance from European financial institutions (Lamont & Sender, 2011). This article relates to macroeconomics because it discusses the concept of interest rates. Interest rates are exclusively related to macroeconomics. Interest rates have a huge impact on the economy because the influence the level of investment and borrowing. If the interest rates are high, there is less borrowing in the economy therefore there is less economic activity on the whole. However, if the interest rates are low, the borrowing is very high thus the accelerated economic activity. The third article is written by Ralph Atkins, David Oakley, Tracy Allowey and Dan Thomas and it was last updated on 23 November 2011. The article deals with the effect of the European crisis on the overall industry in the Eurozone. There has been a loss of a number of jobs due to lack of overall demand. Due to the lack of demand, the production from almost all the industries have decreased and due to lack of operative activity, there has been significant loss of jobs (Atkins et al, 2011). This article is related to macroeconomics because it deals with the concept of market demand and how the market demand drives other economic factors. Market demand is one of the basic economic forces. If the demand is low, there would be less productivity and therefore low economic activity in the region. Works Cited Atkins, Ralph., Oakley, David., Allowey, Tracy., Thomas, Dan. Eurozone Industry Hit by Big Fall in Orders. Financial Times, 23 November 2011. Web. 23 November 2011. http://www.ft.com/cms/s/0/ae13ddf0-15d6-11e1-8db8-00144feabdc0.html BBC.com. EU Ministers Seek Better Economic Crisis Response. BBC, 21 May 2011. Web. 23 November 2011. http://www.bbc.co.uk/news/10134318 Lamont, James. Asian Borrowers on Guard over European Crisis. Financial Times, 22 November 2011. Web. 23 November 2011. http://www.ft.com/intl/cms/s/0/a955366c-14b2-11e1-8367-00144feabdc0.html#axzz1ea5cVi7H Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“European crisis Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
European crisis Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/macro-microeconomics/1437644-european-crisis
(European Crisis Essay Example | Topics and Well Written Essays - 750 Words)
European Crisis Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/macro-microeconomics/1437644-european-crisis.
“European Crisis Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/macro-microeconomics/1437644-european-crisis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF European crisis

European Business Environment

The EU makes legislation that has to be implemented by twenty – seven Member States. Despite the fact that ministers of the United Kingdom actively participate in the discussions stage and in decision making, the fact remains that all the Member States collectively arrive at the final decision.
The European Economic Community was founded by the Treaty of Rome on the 25th of March, 1957. Its preamble states that a major goal or the EEC was to abolish international trade restrictions adopting a suitable commercial policy. However, this was never achieved, because, the purpose of forming the EEC was to empower the Member States against its economic rivals who did not belong to the EEC. An extreme example of such protection...
11 Pages (2750 words) Assignment

The Foreign Policy of the European Union

There was a need for the same as well more so because the rulers of the respective nations wanted their own particular identity and this brings us to the question that if they needed such an identity what was the need of having European Union (EU)? They could have easily made a body comprising of two or for that matter three countries and enacted their own policies and gone about it in the long run but bringing all the European nations together to a single platform only means that there was a courteous move behind the very same. There was an understanding that since these nations had so much in common amongst each other, thus there should be an understanding as concerns to their oneness and unity which could only be achieved throu...
12 Pages (3000 words) Term Paper

A Single European Market

The EC community went a step further and created a common currency called the Euro in 1999. Most member states accepted the Euro, with the most notable exception being the United Kingdom which holds in the Pound currency one of the most valued currencies in the world. The SEM framework inspired greater joint laws in order aspects of administrating a region such as common laws in farming and fishery. The evolution of the European Community attracted greater sums of foreign direct investment into the continent. Europe also changed the way its strategic focus in many industrial sectors in the 21st century to compete in the global economy. This report analyzes the European region by dividing the paper into seven major topics: Single E...
11 Pages (2750 words) Assignment

Napoleon and the Transformation of European States and Societies

Napoleon’s unyielding battle cry required huge recruitment into the army, the radical aspect of the modern state that created the main inconsistencies of the Empire making his rule remain contentious (Brown, 2007).

The period of Napoleon, that is 1801-1805, is marked as the formation of the Grande Armee1 and the allied armies of European empires demonstrating warmongering tendencies. It wa5snt just France and Napoleon but also Great Britain, Russia, Austria, and Prussia that were belligerent empires, as is obvious from the outcomes of the Congress of Vienna in 1814-18152. The new geopolitics and resolutions thus resulted in continued till 1848 when revolutions across the continent ended the Vienna arrangement. The...
7 Pages (1750 words) Term Paper

The European Convention For the Protection of Human Rights

Although the European Court of Justice has interpreted the Convention as imposing positive obligations on member states, the text of the Convention itself belies such a claim. Moreover, the supremacy of the provisions contained in the Convention functions to compromise the predictability and consistency of national laws with the result that it places an undue burden on member states. 

The House of Lords together with the House of Commons in its Twenty-sixth Report titled, Joint Committee on Human Rights distinguishes between negative and positive obligations in the context of the European Convention on Human Rights. The joint committee offered the following explanation:

“Most of the ECHR rights are...
14 Pages (3500 words) Term Paper

The Leading Role in the European Literature of Leo Tolstoy

In contrast to other writers of his generation, Tolstoy was connected with noble families of the Russian aristocracy, who had brilliant French pronunciation and manners. At the same time, he was a person full of antagonism. When Leo was nine he became an orphan. Tolstoy’s upbringing was in the hands of Madam Egorsky. Having lost the parents Tolstoy became a rather difficult child. He was a naughty boy with unexpected deeds, thoughts, ideas, but very kind-hearted (Derrick Leon, 1944, p. 54).

In contrast to other writers of his generation, Tolstoy was connected with noble families of the Russian aristocracy, who had brilliant French pronunciation and manners. At the same time, he was a person full of antagonism. Whe...
8 Pages (2000 words) Term Paper

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages (5000 words) Literature review

European Union Policy: Turkey

...Running Head: European Union.... Topic: European union policy Order#: 377392 Topic: European union policy Profile of Turkey-history, geography and population: “Area: Approx 780,000 sq km (300,000 sq miles) Population: 71.9m (July 2008 est) Capital city: Ankara People: Majority Turks. Minorities recognised under the Turkish Constitution: Jews, Armenians and Greeks. Other ethnic peoples include Kurds, Circassians and Bosnians. Language: Turkish (official), Kurdish Religion: Muslim Currency: Turkish Lira (TL) Government: Parliamentary republic. Membership of international...
9 Pages (2250 words) Case Study

Global Employee Information and Consultation: Replicating the European Model

...Global Employee Information and Consultation: Replicating the European Model INTRODUCTION The only way for the employees and their representatives to reach the level of multinational corporations is to create an effective transnational mechanism that facilitates consultation and information disclosure. The European model (EWC) is an example of an institution that intends to provide employees voice in the transnational arena. The information dissemination and consultation arrangement enable employee representatives to participate in discussing issues that pertains to their employment. However, there is a need to analyze whether EU style of legislating a mechanism shall be effective if replicated globally. The answer in part depends...
9 Pages (2250 words) Coursework

Towards Solutions to the US Debt Crisis

The national debt became 32% of a gross domestic product after the First World War (Chantrill, 2014, Para 1).
The Great Depression then followed, where the then President decided to boost the national debt to 40% of the gross domestic product. He did this by using his way; the local governments also did the same thus improving the state debt by over 5% of the gross domestic product. In 1993, the domestic public debt was over 28%. The state, federal, and government debts all rose by seventy percent of the GDP (Chantrill, 2014, Para 2).

Unfortunately the United States into a new debt in the Second World War. In 1941, the gross domestic product was 45 percent; it rose up to 119 percent in 1946 probably at the end of t...
6 Pages (1500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic European crisis for FREE!

Contact Us