THE IMPACT OF THE GLOBAL FINANCIAL CRISIS. EVIDENCE FROM EU COUNTRIES
THE IMPACT OF THE GLOBAL FINANCIAL CRISIS. EVIDENCE FROM EU COUNTRIES

Summary/Abstract: The recent financial crisis has affected the economies of all countries in the world, including the European Union (EU) countries and has given rise to new challenges for the EU unity and stability. This paper aims at emphasizing the most important determinants of the financial and economic crisis and its impact on the EU member states. Using the Least Square Method based on Panel Data, we analyze the different impact of the global crisis on the EU countries. For this purpose, we have considered four significant variables: dependent variable – economic growth, two independent variables – budgetary revenue and budgetary deficit and a dummy variable – financial crisis. Our result leads to the hypothesis that all EU member states were faced with the financial crisis, but the countries from the non-euro area were more affected than the ones from the euro area because their economies had a higher sensitivity to the disorders on the international markets and, at the same time, they were unable to manage their economic activities in order to limit the effects of the recent crisis.

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