Future Issues and Challenges for EU Economic Governance

Abstract

　The Euro crisis had begun since Paribas crisis in 2007, which brought about severe shock to European Union. As for the crisis that began with the management uneasiness of the subsidiary of Paribas, the crisis spread for the U. K., bank management of Germany, and it brought a European demands decline. Furthermore, the existence of the excessive government debt became clear for the Greek government as a result that the decoration of statistics was shown fiscal deficits of the Greek government from October 2009. The government debt crisis in Europe began with this.

　It is guessed that a series of crises from a financial crisis to a debt crisis gave the euro area countries particularly the Southern European countries a large amount of economic loss. They received this crisis, and EU revised some economic governance. Reinforcement of the financial governance shrinkage-like on a prior mark is also setting of the stable mechanism in Europe subsequently.

　I focus on financial governance in this report mainly and examine a problem of the economic imbalance that EU economy has. After that, I propose reforms of the financial governance including the financial move in this report. In addition, I examine a condition for it to be feasible politically last.

　This paper is constructed as follows. I examine it whether you brought the euro crisis in Section 1 as the opening. I take up a change of the governance from the euro crisis in Section 2. In Section 3, I take up the problem that EU economy after the governance reform has. In Section 4, the realization proposes the desirable reform bill which may be difficult. I examine it how reality of the politics results in ideal economic balance as a summary in Section 5.