The European Union in the Face of the Sovereign-Debt Crisis
The European Union in the Face of the Sovereign-Debt Crisis

Summary/Abstract: The author presents initiatives launched by the European Union in order to overcome the financial crisis of the Eurozone member states. To meet this goal, emergency instruments were created (aid programmes for Greece, the European Stability Mechanism and purchase by the European Central Bank of loans issued by countries of the Eurozone in debt crisis) as well as permanent instruments (the Euro Plus Pact, sharpened regulations of the Stability and Growth Pact and the Fiscal Pact). Emergency measures did not bring about any substantial positive effects, since only the financial situation of Ireland improved to some extent. The state of public finances in Greece is still critical and therefore many economists suggest that this country should declare its bankruptcy. Permanent instruments to fight debt might yield the desired effects (in the case of the majority of the Eurozone countries) if they are used consistently and in accordance with their purpose.

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