The roles of the main EU institutions (Council, Commission and Parliament) in the management of the continuing/financial crisis”
The ongoing euro economic/financial crisis has exposed large gaps in the ability of both the European Union’s (EU) institutions as a whole, and of the euro zone group in particular, to take a common approach to solving the problem. In the absence of an adequate common policy approach we have seen individual member states, including Ireland, resorting to national responses. This has led to fears that member states have acted in an anti-competitive manner, bringing the basis of the Single Market and the stability of the euro (EUR) into question. In turn this has led to fundamental questions being asked about the proper role of the EU, versus that of individual member states, in managing the crisis. The report will therefore seek to address these questions in relation to the past, current and possible future roles of the main EU policy-making institutions in addressing these issues.
This report utilized the descriptive method of research. The methodology research required gathering relevant data from different sources. As widely accepted, the descriptive method of research is fact finding. The main topic analyzed in this report is to critically evaluate the roles of the main EU institutions in the management of the current economic/ financial crisis. Thus, this research is based on lectures, scholarly historical and current perspectives on EU accession, convergence to the euro, and the debt crisis also news sources dedicated to the financial crisis resulting political and economic issues as they unfolded. Historical information is found mostly in journals, news sources including newspapers and magazines, and scholar books. However the European institutions provide many sources online from actual European law to specific information related to each member state. The economic statistic can be found from several sources, e.g. Eurostat, Central Statistics Office (CSO) and the International Monetary Fund (IMF). The news sources dedicated to the crisis as it unfolded including newspapers like The Irish Times, Irish Independent, and Financial Times, newsmagazines like The Economist, Newsweek, and websites RTE News, Citizens Information, BBC News, The Wall Street Journal Online, Euronews. The BBC documents watched both at the lectures and home were very helpful in understanding the background of the current financial crises. Finally I use my knowledge gathered during preparation for my Master’s Thesis ‘Functioning and role of the European Commission in the view of law European Union law’ written in 2005, while I was a Student of Wroclaw University – Faculty of Law, Administration and Economy. The data in this report is almost exclusively qualitative. However, there are some quantitative elements because of the importance of economic indicators. While this assessment focuses on the main EU institutions in the management of the current economic/ financial crisis taken into the special consideration Ireland, it is also important to briefly present other clusters of influences that had a hand in the financial crisis for example, the background of the financial crises including gamble business practices by major global financial institutions and the history of European integration.
III. Background/ Business Context of the crisis.
Many factors directly and indirectly caused the ongoing global financial crisis resulted from a combination of complex factors, including easy credit conditions during the 2002–2008 period that encouraged high-risk lending and borrowing practices; international trade imbalances; real-estate bubbles that have since burst; fiscal policy choices related to government revenues and expenses; and approaches used by nations to bail out troubled banking industries and private bondholders, assuming private debt burdens or socialising...
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