European Financial Economic Crisis

Introduction

4

Causes of the Crisis

5

Consequences of the Crisis

5

Actions of the European Union to address the crisis

6

EU Economy in 2013

6

Why Europe Is in Crisis

6

Why Investors become Suspicious

8

Countries at Risk

9

What is the main problem with fiscal policy

9

Financial Crisis and the Real Economy

10

The depreciation of Euro Justified

10

Economic Conditions of the EU Countries

11

Financial Crisis

13

Imbalances - Macroeconomic

13

Financial Crisis in EU Countries

13

Banking Crisis

15

Pillars of EU Governance

16

Macroeconomic Variables of EU Countries

17

Output of EU Economies

18

Contribution of Each European Country in EU GDP

19

Is there any Way-Out

20

Conclusion

21

References

22

European Financial Economic Crisis

Introduction

In the economic world, the year 2011 was marked by the economic crisis in the European Union. Because of economic globalization we live in today, the crisis spread to the four corners of the world, dropping indices of stock exchanges and creating a climate of pessimism in the economic world.

What happened with the Soviet Union 20 years ago, the European Union collapses under the weight of its own contradictions, economic, international analysts believe. Although in both cases the collapse was predictable, only a few economists have realized this, and the euro crisis is only the harbinger of European, says Philippe, director of the Paris workshop of contemporary economic and Monetary Seminar the Institute Turgot, right. Markets are often criticized for lack of vision and a strategy for addressing the short-term. But in prices, especially in the hedge can find all the information about the present, past and future of the economy, says Simonnt, in a commentary for The Wall Street Journal (Aslund, 2010).

Global Financial Markets are in turmoil, with record volatility on stock markets, unprecedented Losses in Financial Institutions and Banking Systems Even completely being Shaken- out. However, there is one crisis we have managed to avoid within the euro zone - a currency crisis. To defend their currency, the Central Banks are forced to respond with high interest rates and by spending foreign Reserves, Which might or might not prove Successful. The governments of the major Powers Within the euro zone had decided to act together in order to hold in the Financial Crisis, But every country is trying to solve the problems of ITS own banking system on STI tax payers' money. However, every state has joined the action that has a common strategy, focused on two directions: infusion of capital in Banks, Which includes partial and temporary nationalization of Assets, and money injections in the financial markets (Aslund, 2010).

The financial crises that we live for about 5 years have a big impact on the European construction. Countries reassess their relationship with the EU. Over 10 years the EU will look different, totally different from what it is today. Great games are running now, both in Brussels and in European capitals (Essen, 2013)

Causes of the Crisis

High public debt, especially countries such as Greece, Portugal, Spain, Italy and Ireland.

Lack of policy coordination in the European Union to address issues of public debt of the bloc nations

Consequences of the Crisis

Avoidance of capital from investors

Shortage of credit

Rising unemployment

Discontent popular with cost-cutting measures adopted by countries as a way to contain the crisis

Decrease ...