The global financial crisis and the European Union

Abstract

The financial crisis, which had started in July–August 2007 in the US subprime mortgage market before it spread to other segments of the financial markets and, becoming increasingly global, engulfed the real economy as well, revealed and accentuated some of the institu tional weaknesses and – to a lesser extent – strengths of the European Union, in particular, those of the Economic and Monetary Union (EMU). This study analyses the effects and effect mechanisms of the global financial crisis, and within that especially of the sovereign debt crisis, on the institutions and operation of the European Union and the Economic and Monetary Union. The study focuses on the effective legal regulations and past processes, from which future-oriented conclusions are drawn. The analysis of solution proposals that are taking shape can be the subject of another study.