Coordination of European Union Policy in View of Economic Crisis

Abstract

The world financial and economic crisis has hit hard the European Union resulting in a dramatic fall in output, shrinking employment and budgetary problems of member states. The crisis has also restrained opportunities of enhancing competitiveness of the European economy. The efforts to fight both the causes and the aftermath of the crisis were not restricted to a domestic or the Union's level, but were also made in global terms, first of all on the G-20 forum. The measures taken within the EU confirmed its image as a warrant of economic security in all the member states. However, the crisis has unveiled problems that the member states have to struggle with. This is, first of all,the necessity of ensuring proper financial supervision, sound public finance and conducting structural reforms that would strengthen the dynamic growth potential. It will also be indispensable to cope with tensions resulting from political responsibility of governments concerning the national interests and deal with the necessity of respecting the rules of the European Union's. (original abstract)