The roles of the main EU institutions (Council, Commission and Parliament) in the management of the continuing/financial crisis

6737 Words Oct 20th, 2013 27 Pages
The roles of the main EU institutions (Council, Commission and Parliament) in the management of the continuing/financial crisis”

I. Introduction.

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
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Within a month, the threat of a domino effect through the global financial system forced western governments to inject vast sums of capital into their banks to prevent those collapses. The banks were rescued in the nick of time, but it was too late to prevent the global economy from going into freefall. Credit flows to the private sector were choked off at the same time as consumer and business confidence collapsed (Greenspan, 2011).
The newly formed G20 group of developed and developing nations attempted to prevent recession turning into a slump. Interest rates were cut to the bone, fiscal stimulus packages of varying sizes announced, and electronic money created through quantitative easing. At the London G20 summit on 2nd April 2009, world leaders committed themselves to a $5trillon fiscal expansion, an extra $1.1trillion of resources to help the International Monetary Fund and other global institutions boost jobs and growth, and to reform the banks (Brookings, 2009). From this point, when the global economy was on the turn, international co-operation started to disintegrate as individual countries pursued their own agendas. 9th May 2010 marked the point at which the focus of concern switched from the private sector to the public sector. By the time the IMF and the EU announced they would provide financial help to Greece, the issue was no longer the solvency of banks but the

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