“Critically evaluate the roles of the main EU institutions (Council, Commission and Parliament) in the management of the continuing economic/financial crisis”
Submitted by :-
Sabya Sachi Shivam
The purpose of this study is to examine the extent of European crisis, its causes and consequences and what are important steps taken by the EU and Irish institution for the management of crisis. The important sections touched in this report are history of EU and Euro, the crisis, role of EU institutions in the crisis management and recommendation. Intensive research has been done on this report and data collected for this report has been done from journals, library source, newspapers, articles and websites.
European Union and Euro Zone
The main aim for setting up of an European union was to end the frequent wars between the neighbouring countries. In 1950’s the European businesses such as European coal and steel community started to unite the countries on economic and political context for securing peace. There were six founding member states namely Belgium, France, Germany, Italy, Luxembourg and Netherlands. The 1950’s were dominated by some cold wars between east and west and protests in Hungary. Also in 1957 the treaty of Rome was signed which created the European Economic Community or ‘Common Market’.
It was known as the period of economic growth and ‘Youth culture’, EU countries stopped charging custom duties while trading between each other’s, they also agreed over food production. Ireland, Denmark, United Kingdom joined EU on 1st January 1973 and thus the number of states were nine now. But the Arab-Israeli war of 1973 created Economic problems and energy crisis in Europe. After the end of dictatorship in Europe with the end of Salazar regime in Portugal in 1974 and death of general Franco of Spain in 1975 steps were taken to create jobs and infrastructure. European parliament increased its influences in EU affairs and in 1979 for the first time in history all the citizens were given the power to elect their members directly.
In 1981 Greece became the 10th member state of EU and Portugal and Spain joined five years later. 1986 single European act was signed which aimed at free flow of trade in EU i.e. , formation of ‘single market’, and in 1989 Germany was united by pulling down the berlin wall after 28 years. After the collapse of communism across eastern and central Europe, Europeans became closer neighbours. In 1993 single market was completed by free movements of goods, services, people, and money. Two treaties were signed this time i.e. the Maastricht Treaty in 1993 and the treaty of Amsterdam in 1999 which insured how Europeans can work together for environment and when I comes to security and defence. Three more countries Finland, Austria and Sweden joined EU in 1995.
Euro came into existence in 12 countries and ten more countries joined EU in 2004 and 2 more in 2007. The great financial crisis hits the EU and global economy in September 2008. The treaty of Lisbon was made in Dec. 2009; it provided the EU institutions with more effective methods of working and making it more transparent. With the economic crisis EU started working more closely for growth and welfare.
European Crisis – An Introduction
The European debt crisis or Eurozone crisis is the on-going financial crisis which has impacted so severely son some countries that it has made it difficult to repay their government debt without help from any financial institutions. The crisis not only affected the economic conditions but also the political one, with shifting the ruling governments power to others in 8 out of 17 badly hit European countries including Ireland, Greece , Italy, Spain, Netherlands etc. Today as the European countries are working together to solve this financial problem another bigger problem...