EU Crisis and its consequences Essay Example | Topics and Well Written Essays - 4250 words

EU Crisis and its consequences - Essay Example The paper tells that the European crisis is an ongoing financial crisis that has led to involvement of third parties to help in the situation. The crisis began in 2009 with increased fears from investors attributed to by the rising government debt levels around the world. This was followed by an era of downgrading of government debt in a couple of European states. The issue became worse in 2010 leading to actions of rescue. Meetings have been held by the leaders in the project to come up with possible solutions. In projects, leadership should play a key role and this is the case with the European Union however other factors let it down. According to Olsson, there are different things that the leaders have been agreeing on for instance creation of a common fiscal union and balanced budget management in each state. In an issue like this one, it becomes necessary to look at the causes of the same before going deep to get solutions and recommendations. Although the European currency has remained stable despite the shock, sovereign debt has raised substantially in a few eurozone countries. In the crisis countries that are most affected are Greece, Ireland, and Portugal, which collectively contribute 6 percent of the eurozone’s gross domestic product. Members pinpointed to contribute to the evolution of the crisis are Greece, Ireland, and Portugal. From the three states, the crisis is noted to have spread to Italy, Spain, Belgium, France, and the United Kingdom. ... In projects, leadership should play a key role and this is the case with the European Union however other factors let it down. According to Olsson (2009), there are different things that the leaders have been agreeing on for instance creation of a common fiscal union and balanced budget management in each state. In an issue like this one, it becomes necessary to look at the causes of the same before going deep to get solutions and recommendations. Although the European currency has remained stable despite the shock, sovereign debt has raised substantially in a few eurozone countries. In the crisis countries that are most affected are Greece, Ireland, and Portugal, which collectively contribute 6 percent of the eurozone’s gross domestic product (Olsson, 2009, p.23-26). Analysis of the European Crisis Complex factors have resulted to the European sovereign debt crisis including globalization of finance; easy credit conditions between 2002 and 2008 that encouraged much borrowing; trade imbalances in the international markets; slow economic growth after 2008; fiscal policy challenges particularly high entitlement spending; and approaches used by nations to bailout banking industries challenged (Chrisdoulaki, 2010).The dawn of the crisis was in 2000 to 2007 where the global pool of fixed income securities increased. This increased savings in individual states as developing countries entered global capital markets. Different countries in the European were affected by these swings in the global economy that had begun in United States of America. Some borrowed and invested in different ways for instance Ireland, one of the leading contributors of the crisis, lent the money to property developers through its