Impact of Financial Crisis on the European Union Economies

ACKNOWLEDGEMENT

I would like to thank my supervisor for supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It also represents my own views & not essentially the ones associated with university.

Signed __________________ Date _________________



ABSTRACT

The research study has highlighted the impact of the financial crisis on the European Union economies. The global economy that was hit by the financial crisis did not show any signs of such a great depression previously. The economic history of the world has always remain responsive to such recessions as economic situation of the major parts of the world always change and financial markets are collapsed due to the over burdening of consumer bank loans. The recent financial crisis that hit the whole world severely was different in its extent and size however; it was characterized by same feature of the past recessions. This financial crisis was mainly characterized by high availability of the liquidity, low levels of risk premium, fast growth of credit for long time, high levels of leveraging, climbing prices of assets with the progression of bubbles in the real estate sector. The long periods of leveraging state made the financial markets exposed to various market risks and corrections made within the assets market. Due to such situation of the financial markets, the changes in the economic situation of the United States were enough to collapse the complete structure.



TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

Background of the Research Study1

Aims and Objectives of the Research Study2

Problem Statement3

Significance of the Research Study3

Rationale of the Research Study4

Research Questions5

CHAPTER 2: LITERATURE REVIEW7

Theoretical Framework7

Foundation of the European Union7

Economic Conditions of the EU Countries9

Financial Crisis11

Financial Crisis in EU Countries13

Macroeconomic Variables of EU Countries13

Economic Conditions of China14

CHAPTER 3: METHODOLOGY17

Research Methodology17

Research Philosophy17

Research Approach18

Research Design18

Data Collection Methods19

Rationale for a Qualitative Study20

Data Collection Instruments21

Reliability/Dependability22

Validity22

Ethical Measures22

Limitations of the Research Study23

CHAPTER 5: CONCLUSION29



CHAPTER 1: INTRODUCTION

Background of the Research Study

The research study is based on the impact of financial crisis in the European Union economies. The global economy that was hit by the financial crisis did not show any signs of such a great depression previously. The economic history of the world has always remain responsive to such recessions as economic situation of the major parts of the world always change and financial markets are collapsed due to the over burdening of consumer bank loans. The recent financial crisis that hit the whole world severely was different in its extent and size however; it was characterized by same feature of the past recessions. This financial crisis was mainly characterized by high availability of the liquidity, low levels of risk premium, fast growth of credit for long time, high levels of leveraging, climbing prices of assets ...