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

6725 Words27 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…show more content…
Investors searching for higher yields than those offered by US Treasury bonds sought alternatives globally (NPR-The Giant Pool of Money, 2008). Since 2007, nations around the world experienced a series of major economic and financial problems. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. The housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the global recession and contributing to the European sovereign-debt crisis. The 9th August 2007 began with the seizure in the banking system precipitated by BNP Paribas announcing that it was ceasing activity in three hedge funds that specialised in United State (US) mortgage debt. On 15th September 2008 when the US government allowed the investment bank Lehman Brothers to go bankrupt. Up to that point, it had been assumed that governments would always step in to bail out any bank that got into serious trouble, the US had done so by finding a buyer for Bear Stearns while the United Kingdom (UK)
Get Access