ECONOMIC CRISIS

Economic Crisis of the Eurozone - An Analysis of the Current Market Situation and Proposed Solutions

Governance and Institutions: Impact of the Escalating Crisis - Article Analysis

The article talks about the integration of Europe in the year 2011. Economic governance has been a very close companion of this integration. In spite of this fact, the term economic governance remains ambiguous. For some people, it means a lose form of governance while for others it means fiscal federalism. Perhaps it is because of this reason that the governance in European Union has faced a crisis (Dinan, 2012, pp. 85). This is reflective in the fact that the current crisis faced by the company is neither purely economic not merely institutional. In fact, for the first time it has been noted that the developments which have recently taken place with regard to the European economy and the looming crisis both have implications for governance in European Union.

The good thing about the article is that the writer strives to remain objective. He does this by making an argument and proving it giving rational examples. For instance, the author quotes Greece as a case in point. The crisis in Greece has led to the destabilization of the government whereby the government lost control and election (Dinan, 2012, pp. 85). He expresses his concern over economists and other policy makers trying to address the issue. The gravity of the issue is explained by reflecting upon the fact that the problem which is multi pronged also needs a multi pronged approach for solution.

The author suggests that what is needed at this stage is cohesion of the European Union. However, the level of impact that this had on governance was not the same between the countries that are a member of European Union and those that are not.

The author does justice by mentioning the efforts made by European Union countries to address the issues. He says that during the short period of one year, that is, 2011 the EU members met seven times. Five of these summits took place as per the European Council setting while the remaining two sessions were out of these settings. One took place in extraordinary circumstances and the other one was informal. The political distinction between the members of the European Union and its plausible implications and contribution in the escalating crisis is also reflective in the fact that there were two separate summits for EU-27 and the EU-17 (Dinan, 2012, pp. 85).

There are some countries which are doing relatively better than the others. For instance, Poland is another case in point which is at the centre of European Union and has been affected by the crisis as much as the other countries across Europe, but has come out of it quite well.

The reasons for the crisis may be known to all but they have been explained in the given article in quite comprehensive way. If there are two major reasons that led to the crisis in terms ...