The Current Economic Crisis of the EU: Genesis, Analysis and Solutions

Abstract

Abstract The article approaches the current economic crisis from an historical perspective, analyzing the building of the monetary integration and the common currency. The process is explained through pointing out its effects on the European integration and outlining the positive and negative consequences of the introduction of a common currency in the European Union. The investigation continues with a general outlook of the current situation of the countries which were more affected by the current crisis-Greece, Ireland, Portugal, Spain, Italy and Cyprus. What all these countries have in common is the necessity of extra funding in a context of austerity, plus some national particularities. The author proposes an expansion in the public spending as the only reliable way to stimulate European economies in the crisis. As the introduction of the euro meant the end of the monetary independence for the Member States, an innovative solution is proposed-the creation of an Economic Government in the union in order to transfer funds from wealthier states to the countries in trouble. It is presented as a necessity for the states in crisis, a necessity for the wealthier states, and a must for the European Union.