Free The European Union legitimacy crisis: causes and solutions Dissertation Example
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Table of Contents
TOC o “1-3” h z u Abstract PAGEREF _Toc511596680 h 41.Introduction PAGEREF _Toc511596681 h 42.Literature review PAGEREF _Toc511596682 h 52.1 Currency Unions, the Eurozone, and the existing Fiscal Policy PAGEREF _Toc511596683 h 62.2 Crisis in Europe PAGEREF _Toc511596684 h 72.3 Legitimacy crisis in smaller countries such as Europe PAGEREF _Toc511596685 h 82.4 Fiscal Policy and its Importance in Eurozone Maintenance PAGEREF _Toc511596686 h 92.5 Events and consequences of the Crisis PAGEREF _Toc511596687 h 93.Legitimacy and economic Consequence of this Crisis PAGEREF _Toc511596688 h 133.1 Setting the Stage PAGEREF _Toc511596689 h 143.2 The development of Europe in the European Union Integration PAGEREF _Toc511596690 h 154 Methodology PAGEREF _Toc511596691 h 164.1 Questionnaires PAGEREF _Toc511596692 h 174.2 Analysis PAGEREF _Toc511596693 h 20Causes PAGEREF _Toc511596694 h 204.2.1 Economic Sphere PAGEREF _Toc511596695 h 204.2.2 Socio-political environment PAGEREF _Toc511596696 h 214.3 Solutions PAGEREF _Toc511596697 h 234.4 Discussion PAGEREF _Toc511596698 h 24Reference List PAGEREF _Toc511596699 h 25
Word Count: 14, 031 words
AbstractLegitimacy crisis takes place in a country or a region when the citizens of a country treat the institutional powers as threats to the economy and the people. When the political institutions and those that are on power lose the will and trust of the people, they can try to pursue the legitimate actions for themselves. The bearing of legitimacy crisis on the European countries is being felt in all the countries that make up Europe. This all began as an acute crisis that had affected the banking systems. With time it extended to the real economy. Consequently, it felt like a substantial slump that was seen in the business sector. The slump led to the decrease in the business investments and an increase in the demand for goods by different households. This crisis made the European Union economies to be affected deeply, and it is one of the main reasons for the well-debated BREXIT. By the year 2009, the Growth Development Produce of the European Union fell by about 4.1 percent. Similarly, the industrial produce reduced by about 20 percent. In the year 2008, the situation forced the European Commission to launch a European Legitimacy and Economic Recovery Plan (EERP). Legitimacy crisis results in the economic crisis. The purpose of this paper is to identify the main causes and solutions that were applied to solve the legitimacy crisis in Europe. It looks at its strengths and weaknesses and the reforms that have been done through the time of crisis.
IntroductionA legitimation crisis refers to the reduction of the confidence that the people have in the administration and the other administrative functions such as the institutional leadership. It is a term that was introduced in the year 1973 by Jurgen Habermas (Ifanti, Argyriou, Kalofonou and Kalofonos, 2013, p.8). Government bond risk premiums in the EU revisited: The impact of the financial crisis (Von Hagen, Schuknecht, and zolswijk, 2011). European Journal of Political. He was a German political scientist and a psychologist who intended to expand on the concepts of institutional conflicts. He claimed that the legitimations crisis makes it difficult for the administrators to maintain and establish the structures that are effective in achieving the goals. It is also a term that has been used by them by political and social scientists to show about the political realm that exists in the institutions. From the start of the crisis, there have been thoughts on how to reform and the implementation that is limited to the frameworks in the Eurozone. These responses are to the deficits that have been created by the political instability and lack of accountability. It also affects the democratic legitimacy in the Eurozone
(Karanikolos, Mladovsky, Cylus, Thomson, Basu, Stuckler and McKee, 2013, p.1323). It also shows the institutional structures as well. While there is no unanimity that takes place among the social scientists that take place when claiming that there is the evidence of the legitimation crisis, there is the predominant way that is used to measure the legitimate crisis (Karanikolos, Mladovsky, Cylus, Thomson, Basu, Stuckler and McKee, 2013,p.1324). This is done through the observation of the attitudes that the public have when measuring the level of their response to the organizations. For a long time, the European Union have suffered from the range of legitimate crises that starts from the difficulty of identifying the legitimacy problems. This is partly because there are the complex internal structures as well as the different ways that they use to function. Hence, it is seen in different government levels and the centres of authorities that deal with the decision-making process (Kentikelenis, Karanikolos, Papanicolas, Basu, McKee and Stuckler, 2011, p.1325). This paper shows analysis of the classical legitimacy concept in Europe, how they started and the solutions to them. There is numerous importance that is attached to how nations treat their citizens and how legitimate they are in dealing with the questions of legitimacy. The dimensions of citizenship dress the means of considering the citizenship possibilities and what they can do for their countries depending on the level of legitimacy (Kondilis, Giannakopoulos, Gavana, Ierodiakonou, Waitzkin and Benos, 2013, p.12). The crises have also been made worse by the decision of the United Kingdom to quite the European Union through voting for Brexit. This process of voting is one of the things that have made the people make the argument of the true existence of the legitimacy crisis (Ladi, 2014). The fact that the decisions were taken by the people themselves shows that they have no faith on the other people who are charged with the responsibility of dealing with the citizens. The many decisions that are being taken by the citizens that are against the rule of law are due to the lack of faith that they have on the people. They believe that the government cannot be held accountable and that they have let the people down quite too much (Lopez Bernal, Gasparrini, Artundo and McKee, 2013). This is what the scholars say about the Brexit is one of the proofs that say that process is a symbol of the legitimacy crisis that ruins deep in the European Union. It is also highlighted that the same crisis is mostly seen as the identity terms that is consist of the huge number of the European citizens feeling that the identification of the goals that Europe had is not enough for their integration (Madianos, Alexiou, Patelakis and Economou, 2014). While it is important to check the European public identification, the roots are the legitimacy tests that lie within the institutions of the European institutions and do not have the basis on the patients of the European Union (Schimmelfennig, 2014). This has been the basis of the legitimacy from the time the British citizens were given the freedom to vote whether they wanted to be part of the crisis or not (Simou and Koutsogeorgou, 2014). The vote also focused on the issues of identity and the meanings that were translated differently. The main reasons why the British public did not want to be part of the system is because they did not feel that being part of this system was enough for them to move forward. They even risked the chance of having the value of their currency degraded from the European market. The campaigners of the European Union have been unable to speak about the communication benefits and the fact that having the single market will not be enough for them.
The issue of the xenophobic popularize has been quoted to be one of the keys to the changes in the crisis legitimacy. The debates have been carrying the most hysterical characters that cannot be mentioned in other arguments. Apart from the European stability, there are also other threats such as the political and security threats that are posted by the outcomes of such measures.
It is believed that the roots of the current legitimacy crisis are based on the developments that are experienced in the countries. The plan is significant in several ways. It plays a massive role in the policy of cohesion and the mitigation effect of the crisis. From these, there were various structural funds such as the European Social Fund that was quite instrumental to the member countries, the speed at which the various procedures enabled the redirections for the funds that had been praised. As such, there was the ability to adjust to the diverse local context that implicated the different crisis effects.
Literature reviewThe bearing of the legitimacy crisis has been felt at the financial and economic level at the present day. This all began as an acute crisis that had affected the banking systems. With time it extended to the real economy. This led to a substantial slump that was felt in the business sector. The slump led to the decrease in the business investments and an increase in the demand for goods by different households. This crisis made the European Union economies to be affected deeply. By the year 2009, the Growth Development Produce of the European Union fell by about 4.1 percent. Also, the industrial produce reduced by about 20 percent. In the year 2008, the situation forced the European Commission to launch a European Legitimacy and Economic Recovery Plan (EERP). This plan was proposed with the aim of coordinating the Member States to respond to this legitimacy and economic crisis. Also, the study shows the extent to which the country got the support that they needed from the other European nations. Also, the question as to what extent does this support today has after the country nearly collapsed regarding its economy and what were the main rescue packages that were brought about by the European Union. Consequently, the main results of the financial crisis meant that Europe is facing numerous difficulties. These difficulties come as a result of the terms that have been put in place by the European economy as well as the other monetary unions.
2.1 Currency Unions, the Eurozone, and the existing Fiscal PolicyThe European financial and legitimacy and economic crisis was debt crisis that was suffered by the European nations for several years (Kentikelenis, Karanikolos, Papanicolas, Basu, McKee and Stuckler, 2011, p.1458). The crisis started from the years 2009 and had had various impacts on different European nations. According to Karanikolos at al., (2013) the crisis affected many of the euro state members. The main member states that were mainly affected by the crisis are Europe, Ireland, Spain, Portugal and Cyprus (Von Hagen, Schuknecht, and Wolswijk, 2011). From the very beginning, these countries were unable to repay their financial debts and other government debts (De Grauwe, 2013, p.15). The countries were unable to repay the indebted banks that the national supervision bodies. This called for assistance from the European central bank as well as the monetary funds (Ifanti, Argyriou, Kalofonou and Kalofonos, 2013, p.9).
The main causes of this crisis vary according to different sources in most countries, the debts arise from the properties that had bubbled and had been transferred to the sovereign debt (Karanikolos, Mladovsky, Cylus, Thomson, Basu, Stuckler and McKee, 2013, p.1325). Consequently, there were bailouts that came from the banking systems and governments from the other countries within the European zone. The various structures of different Eurozone’s came up with different ways to save the situation (Simou and Koutsogeorgou, 2014). One of the structure is the current union on one currency, for example, the different taxations and rules used for a pension. All these contributed to the limitation of the impacts that the crisis had (Correia, Dussault and Pontes, 2015, p.1600). The European banks have the most significant sovereign debt.
The crisis had the countries concerned, especially in ten years after 2010 (De Grauwe and Ji, 2013, p.16). It made the European nations to implement a series of supports to stabilize the situation (Schimmelfennig, 2014). Some of the measures that were meant for financial support include the European Financial stability and the European stability mechanism (Drydakis, 2015, p.43). They were meant to solve this crisis through other means such as lowering the interest rates that were charged by the banks in the European nations (Ifanti, Argyriou, Kalofonou and Kalofonos, 2013, p.12). This allowed the countries to take the loans, especially in the amounts that were higher than one trillion euros. The main reasons behind lowering the rates were to maintain the flow of money in different banks in the European nations (Clements, Nantou, and Verne, 2014, p.247). Furthermore, the ECB managed to calm the financial markets through the announcement of several unlimited supports through all the countries in a bailout (Banat, Burns, Hunter and Williams, 2014, p.51). This bailout programs acted as precautionary measures and lowered the outright of the monetary transactions (OMT) (Baumbach and Gulis, 2014, p.117).
There were several countries that were able to exit these bailout programs due to their growth and development and the improved deficits. Ireland and Portugal all managed to exit the programs in the year 2014 (Ladi, 2014). It is the same year that Europe and Cyprus managed to have access to the markets. However, Spain was unable to officially get the bailout programme (De Vogli, 2014, p.58). The rescue of the same country was earmarked for the recapitalization. It did not include the government support of its own.
The crisis significantly affected the economies as well as the labour markets. It led to an increase in unemployment in countries such as Europe and Spain to more than 27 percent (De Vogli, 2014, p.58). The subdued growth of the economy was mainly caused by this crisis in the same countries and the entire European nations (Baumbach and Gulis, 2014, p.399). Similarly, the crisis was the main reason for the political instability in these countries and adversely led to the power shifts in Portugal, Italy, and Slovenia, the Netherlands as well as the other countries that are outside the Eurozone line the United Kingdom.
2.2 Crisis in EuropeThe crisis in the Eurozone was as a result of different factors that were complicated in their ways. Factors such as the financial globalization and the conditions surrounding the easy credits within the period of 2002-2008 had a huge impact on the crisis (Baum, Schafer and Stephan, 2016, p.118). The easy credit conditions allowed the countries to lend and borrow at very high rates that were putting the economies at massive risks (Beirne and Fratzscher, 2013, p.60). The other factor is the financial crisis in the year between 2007 and 2008 and the imbalances that existed in the international trade (Beirne and Fratzscher, 2013). There were the main estate bubbles that led to the great recessions between the years 2008 and 2012 the choices by the related governments in the fiscal policies that were used by the states were able to bail the banking system by the private bonds. The crisis also had roots from the early nineties when the European nation members managed to sign the Maastricht treaty (Allegret, Raymond, and Rharrabti, 2016, p.129). This treaty was pledged on limiting the spending deficit. It also limited the level of debts that a country could have (De Vogli, 2014). The countries failed to stay within the confinements of this treaty. They instead resorted to securitizing their government revenues to reduce the debts and deficits (Beirne and Fratzscher, 2013, p.62).
Because of these practices they had sidestepped the rules that were meant to benefit the countries and ignored the standard that was set at the international level (Baumbach and Gulis, 2014). Consequently, the sovereigns were able to mask their level of deficit and some debts that came as a result of techniques such as inconsistent accounting practices and other transactions that were off balance (Lopez Bernal, Gasparrini, Artundo and McKee, 2013). From the year 2009 and afterward, Europe had a newly elected PASOK government administration that masked its indebtedness and the deficit in the budget (Beirne and Fratzscher, 2013, p.65). There were fears of the European states that were managed in public (Bulmer, 2014, p.1244). The crisis gradually spread to Ireland and Portugal, thereby raising several concerns in other countries such as Spain and Italy (Beirne and Fratzscher, 2013, p.67). Hence, the government debts in numerous countries got downgraded.
The Euro, the Eurozone, and the International Monetary Fund
From the early 2000s, the economy of Europe as one of the European nations was one of the healthiest in the region. The economy of the country was growing at quite a faster rate compared to other countries within the Eurozone (De Vogli, 2014, p.59). The growth was due to the large structure and the deficit. Because the world economy was still feeling the impacts that were imposed on it by the crisis, Europe was hit much harder since the main industries of the country such as tourism were quite sensitive to the changes (De Vogli, 2014, p.60). The changes in the business circle such as the shipping services impacted the economy of Europe (Kondilis, Giannakopoulos, Gavana, Ierodiakonou, Waitzkin and Benos, 2013). This meant that the government had to spend heavily to keep the economy in functioning as the debt increased as required. Despite the revision of the 2009 budget, the rate at which Europe borrowed increased tremendously (Filippidis, Schoretsaniti, Dimitrakaki, Vardavas, Behrakis, Connolly and Tountas, 2014, p.957). By the year 2010, it became quite clear that the country could no longer borrow from the outside market. Consequently, the government of Europe requested for over 45 billion euro loan from the European Union and the international monetary fund (Antonakakis and Collins, 2015, p.63). The borrowings were meant to cover the financial needs of the country that would help it in the entire 2010.
The poorly set standards were able to slash the sovereign debt as junk in its status as there was fear for the debts becoming the default in case this had happened, the investors would lose between thirty percent and fifty percent of their money (De Vogli, 2014). This was also because the euro had been downgraded in the worldwide stock market. There were various austerity measures that were announced by the Greek government that was meant to secure the 110 billion three year loan. It was part of the first legitimacy and economic program (Madianos, Alexiou, Patelakis and Economou, 2014).
Because of this program, there were massive protests as well as the riots that took place throughout Europe due to the social unrest (Madianos, Alexiou, Patelakis and Economou, 2014). Europe was also offered a second bailout loan of 130 billion by the year 2011, by the tripartite committee that was formed by the troika (Battistini, Pagano and Simonelli, 2014p.203). The loan was also part of the help that the country got from the European central bank and the international monetary fund. The implemented austerity values helped Europe to reduce the main deficit that they had. There were deficits that affected the recession in Europe. The recession started in the year 2008 and worsened between 2010 and 2011 (Madianos, Alexiou, Patelakis and Economou, 2014).
2.3 Legitimacy crisis in smaller countries such as EuropeThe GDP of Europe declined by 7 percent (-7%) when the season had adjusted through the industrial output (Madianos, Alexiou, Patelakis and Economou, 2014). Most of the Europe companies went bankrupt by the year 2010 some which were more than 27 percent in regression.
Consequently, Europe lost more than forty percent of the purchasing power of the time the crisis had started they also spent less on goods and services. There was a massive unemployment rate that increased by more than three times in the previous years (De Santis, 2014, p.150). By the year 2008, the unemployment rate was about 8 percent, and it rose up to around 30 percent by the year 2013. It was even worse for the youth unemployment that rose from 22 percent to around 62 percent (Madianos, Alexiou, Patelakis and Economou, 2014). The population share was living at the poverty and social exclusion. The risk did not increase within the first two years.
Because the economy of Europe is smaller than the other European nations, they are unable to be in a position where they can devalue their currency so that they can gain the legitimacy and economic competitiveness. This is also because Europe uses the same currency as the other European nations. This single currency forces the country to use the same value, and hence they cannot have the competitive edge in the economy. The structures of the economies in the European Union countries may have been inadequate to help in addressing the national vulnerabilities of the country during the period of crisis. Due to these reasons coupled with the fact that Europe had its legitimacy and economic status worsening, I will hypothesize that the states are fraying the Eurozone. They are also degrading the legitimacy and economic relations between the countries. This can be demonstrated through the growing scepticism within the European states that have small and weak economies. Additionally, the citizens of Europe have indicated that the scepticism which is shown through the increase in separation of the parties as well as the policies that are meant to support Eurozone members. This is as a result of the political shifts that have taken place in each state from the start of the crisis. To have the best of the phenomenon study of the fraying, I will have to address the other questions about the challenges that are posed to the economies that are weaker and the incorporation of such challenges into the Eurozone. I will also analyse the impacts of the debt and the crisis in Europe the crisis will be looked at regarding EU/IMF bailouts. It is these bailouts and the austerity measurements that can respond to the crisis and the national changes in politics.
2.4 Fiscal Policy and its Importance in Eurozone MaintenanceThis thesis will analyse the challenges that have been presented to the Greeks as the small and weak economies that are within the Eurozone from the period of the 2010 European debt crisis. Consequently, Europe has been facing numerous difficulties that have been poised with the terms that have been put in place by the European economies and most of the monetary union.
Because the economy of Europe is a small one, the country is unable to devalue its currency about the other nations with the larger economies. The devaluation can give the country a competitive edge over the other countries as the member of the single currency. They can recognize that the structure of the economy in the Eurozone does not address the national economies and it does not address the vulnerabilities that the country is facing during the legitimacy and economic crisis. Because of this, the economy is getting worse, and the other conditions within the country are affected by the rules that have been set by the Eurozone.
The citizens of Europe are indicating that the scepticism that had been imposed to them through the increase in the political party separation, as well as the policies, support the membership of the Eurozone states it is also demonstrated that the political shift in the country is among the states started from the time of crisis. It is this fraying concept that is studied in the three main areas. The first issue is the experience that Europe has had with the bailouts that they have been given by the European nations. The second area is the austerity measure that is taken as a consequence of the faced crisis. The third area is the resulting Greek level of the political changes that the country has gone through. This includes the negative political shifts that are affecting the elections in the country.
2.5 Events and consequences of the CrisisOne of the biggest supranational organization in the world history is the European Union it is also the most ambitious organization. The original idea of the organization of the European Nation was to avoid war it was based on the fact that he rival nations could benefit each other more when they pooled together their sovereignty instead of going to war with each other. This way, the intention was to have a better legitimacy and economic status as well as stopping the war that was taking place between these rival nations. This idea developed for most of these countries. In its formation, political union was the basis of the integration project. After the political union, there will be the ultimate goal of having both legitimacy and economic and financial stability. Nonetheless, legitimacy and economic stability are as a result of the political stability among the nations. Despite all these attempts, there was the reluctance of the sovereign states that were not willing to cede the power that they had in their government. Due to these differences, the union started as legitimacy and economic one which was a process that was slowly but steadily evolving. As a result of the legitimacy, and economic instability that has been faced by the smaller nations between the years 2008-2011, this legitimacy and the economic and monetary union have been in question as a result of the difficult conditions faced by the states such as Europe and Ireland.
Due to the legitimacy and economic and financial crisis, the legitimacy and the economic and monetary union have to come into question due to the difficult conditions of the economy that the smaller nations within the Eurozone face. This crisis revealed the massive divide that the countries within the Eurozone had with the European Union.
An analysis of the Attempted Solutions
The two could not agree on the basic terms and what can be done to help the situations such as this big legitimacy and economic crisis. Interestingly, this crisis forced the union to revise the policies and the state of the legitimacy and economic and monetary issues. The crisis also made it bare that the existing legitimacy and economic policies are not enough to handle a legitimacy and economic instability of this magnitude, especially while keeping the single currency afloat. It became a question that most of the countries had to take a closer look at. What would they do in case of such situations? Also, it was important to address how the Eurozone states such as Europe, which struggled with their economy revise their membership in the Eurozone and the European Union. The country was facing massive legitimacy and economic constraints that had been put to it because it had adopted the euro and its policies and hence it had no power to control the economy.
Even if Europe may be thinking about revising their status in the single currency membership, there are several issues that are at stake. Having a single currency has several advantages. Apart from tightening the special relationship that exists between the union member states, it tightens the legitimacy and economic relations within all the seventeen member states. This currency acts as a cloth that tightens the relationship between the countries. In case one of the elements in the European Union can start to pull away, the others will follow. This implies that in case Europe can pull away from the currency, the others will follow soon after such as Portugal and Ireland. Due to this logic, there is the assumption that the legitimacy and economic benefits that Europe gets from the other euro states will continue to downgrade since they do not have the single currency as the whole of the zone unravel. The pull-out can only endanger the legitimacy and economic status of the countries further. Additionally, it may endanger the states that make the core of the Eurozone. Bade on the experiences that Europe and other countries with small economies have gone through the issues that the country has gone through are as a result of avoiding the pull-out. In case, there are several advantages that may come with having an independent currency. The advantages also edge the weakening of the relationship between these countries.
According to the data from the secondary sources, there are several findings that are clear. The main issue is the financial and the legitimacy and economic downturns. The European nations have suffered regarding the revenue that the countries get as well as the widening deficits by the government. The high debt levels in the country are pushing several governments in Europe into huge debts and massive deficits. In essence, the crisis is leading to what is referred to as the Sovereign debt crisis in the European community. Currently, Europe is facing the crisis as a result of the accumulated debts that have been piling throughout the decade. For Europe, the debts have been accumulating before this crisis was felt across the nations.by this time, the capital market had not been passed the liquid level. Because the crisis unfolded as a surprise to several people, there was the crunch that took place in the worldwide economy. It means that Europe is no longer able to the role the maturing obligations and the debts.
Consequently, the Eurozone is under the serious sovereign debt crisis. Numerous member countries in the Eurozone do have the highest potential, but the debts mean that they cannot sustain further debts. The public debt is a huge problem in these countries, the countries such as Ireland and Portugal. These countries have been borrowing too much money from the countries within the European Union and the International Monetary Fund (IMF). The countries have done these to avoid some stated default. Having the largest debt in public as well as the massive deficit, Europe is currently at the centre state. The crisis is still being in the interest of the Congress as a result of the strong relationship that exists between the United States and the European Nations.
The build-up to the crisis is one that has been recorded in several pieces of literature
Historically, the crisis in Europe has been a gradual process. From the year 2001, there was a report by the country about the deficit on the budget that was averaged at five percent. This was a massively different budget from the other Eurozone that had an average of 2 percent in the deficit. By the time the Eurozone deficit had decreased to just 1 percent, the country Europe was already at a deficit of 9 percent.
To fund the deficits, the country had to borrow from the international market that left it either a high external debt. The debt was more than the GDP of the country. There are several reasons for the current legitimacy and economic situations. World legitimacy and economic situation are one of the reasons. The income had downgraded massively on a wild wide basis. This was after the release of the supreme crisis reducing the revenue that the country had been getting.
Even though the market had started recovering, the market was later in the run, and it had an impact on the stoke market. The reduced savings led to the lack of confidence from the investors. This low investment contributed massively to the fall of the country as well as the reduced number of tourists arriving into the country. This also had an impact on the importation and exportation into and out of the country.
As there was speculation on the status of the euro as the best reserve regarding the other currencies, there was an improved amount of Hedge fund that was bet against Europe. This was as a result of many negative reports ion the media. The media reported that the legitimacy and economic status of the country were in danger. Some of the reports were external, and all fuelled the situation in the eyes of the other European nations. The ratings of the country were hence reduced by three of the biggest agencies to the level A2. All these just worsened the situation by skyrocketing the borrowing.
As a result, the euro and the other nations felt the spread of this crisis including Italy Portugal and Spain among others. As the panic grew, there was a massive test that the whole Eurozone had to go through as the economy of Europe makes up to 4 percent of the GDP and results into more than 5 percent of the total debts.
Countries such as Portugal, Ireland, and Italy had several problems. First, the structure had changed following the crisis. There was an expensive expenditure that took place for more than six years as the revenue growth had stagnated. In Turkey, there was a fall in government expenditure that had also accounted for the borrowings. The unregulated labour market in Europe had spread in most parts of Europe. The industries started to suffer as a result of a massive decline in the international competition. The wages in Portugal had also increased and was at a 5 percent annually. The obsolete pension scheme system is another issue that was completely made due to the crisis. The fact that these countries have a higher population aging is the main factor. The pension system in Italy was expected to rise in the year 2007 as there was a more burden on the public budget to cater for the compensations of the aging group. The other countries had also suffered this including Portugal and turkey. There was also a huge impact that the crisis had on the global market at large. In case Europe had defaulted there would be risked on the contagion that was different from the other countries in Europe. The national law savings in countries such as Portugal is one example as they keep the countries in the weakest possible position financially.
It is also notable that the governments in Europe had underwritten a prominent institution that was concealing the main debt. For instance, it is alleged that the government exchanged the future revenues that were from the airports and the other lotteries. It is also alleged that the country had traded the exchange rates that would favour them to allow them several billion. The trading of currencies was one of the issues that raised massive concerns with the neighbouring countries such as Turkey. These transactions did not need any reporting under the European Union rules of accounting.
As much as the crisis brought misfortunes to the Eurozone, there were positives as well. For example, the crisis was a revelation regarding integration in the Eurozone. This is also the imbalance that was seen in the Eurozone and the mismatch that took place between the advances of and the government of different governments. The legitimacy and economic areas have a single currency with sixteen different monetary policies as well as the fiscal policies.
The loss of investor confidence is one of the issues that other European countries faced as a result of the crisis. There aware many aspects that led to the loss of confidence. The future of Eurozone was not clear making the investors worry about what they would expect from the countries. The value of the Eurozone also affects the global market as it translates to an increase in United States exports and increases the exports from the Eurozone. This widens the trading deficit in such country.
Since the euro came into existence as the single currency for the Eurozone in the year 1999, the 2010 sovereign debt crisis that was faced by the Europeans is resulted to be the most extreme test for the currency. There have been other challenges for the countries. However, the legitimacy and economic instability have been the most challenging to the European currency. By the year 1992, there was the signing of the Maastricht Treaty. This paved treaty way for the nations has the monetary union. Consequently, on January 1, 2002, there were about 12 states which were participating in the treaty. These states introduced the euro notes as well as the euro coins. The currency was the one that would be adopted as it gradually went through the phases to do away with their initial national currencies. Nonetheless, there was more than one idea on the tangibility of the euro being used as a unified currency in all the twelve nations that had signed the treaty. This use of the euro was one of the main steps forward that helped in the European integration. As a result; there has been the start of the European Coal and Steel Community (ECSC) the community was formed immediately after the World War Two.
The Monetary union is a representation of the most powerful method of a massive commitment that has been made to stable and united European continents the peace also leads to a peaceful European environment, as the thought that was envisioned by its originators on the idea of the Europeans integration. This euro currency creation also provides numerous benefits that the member states of the European Union member get. Some of them include the access to the larger trade market regarding the strength of the currency; there is the access to the strong currency that all the states benefit the lower interest rates in case there is the borrowing from the states. Even though these advantages are there to be seen, the consequences of Europe being a member of this single currency have led to a massive crisis, and it can be seen clearly. Apparently, several states have come to a standstill and are in a dangerous situation. They stand the risk of default, and they are unable to have the payments that are on their national levels within the membership of the Eurozone.
Before Europe could adopt the recommended currency, there were several prerequisites that had to be met. These controls were set by the Maastricht Treaty such as ways of controlling the inflation rates, the deficits as well as the exchange rates. The interest rates are also highlighted in the treaty. The above controls had been established in order to provide the protection that is needed for the legitimacy and economic stability that is needed in the other European Union states. These states use the euro currency to allow the common currencies across several other sovereign states.
Legitimacy and economic Consequence of this CrisisWhen the legitimacy and economic crisis took place, there was the surprising stability in the economy in the other national players that were within the Eurozone. The countries like Germany and France were aware of the crisis, and they become threatened by the levels of the debt which unsustainable. After this, the large bailouts were needed to spare the risks that were faced by the states. There had to be something that had to be done to ensure that the status of the super nations is restored and preserved in the world. This was because the Eurozone was a trustworthy bloc that was recognized from all across the globe. The European nations are also a united bloc that is united to always bail out the other nations.
This led to the formation of the PIIGS. This was an acronym that represented the following states; Portugal, Ireland, Italy, Europe, and Spain. The five countries are the ones that were of the default risk and the ones that had been faced with the crisis. They could not sustain their economy due to the higher percentages of the debts that they had about the gross domestic products. Having seen the status of its economy and the high debts, Europe resorted to getting a possible fix because it had a smaller economy. The country needed the emergency assistance that came from the European Union and the other emergency funds that could sustain it from the International Monetary Fund these emergency bailouts could see it go through the crisis.
The crisis status was obvious that the countries such as Portugal, Italy, and Spain will have to face some of the toughest challenges that are staring into the debts that they had. Also, there were the fears that there would be possible trouble having seen what had taken place in Europe. It was later clear that Ireland was also facing the similar problems and was added to the list of countries that needed an emergency bailout.
Europe was spread in the states as the union added Ireland later on. Europe had a different mind-set, both socially and culturally. This is why the economy of Europe is unique as compared to others like Irish economy. These characteristics were important and were reflected before the country could join up with the European community. Between the years 2009 and 2010, the country experienced the crisis and had to deal with it in several ways as the state was struggling to put up with it. Europe had to come to terms with the legitimacy and economic statistics that showed the massive spending in the public sector. There were several investors who had lost confidence in the economy and were withdrawing from investing in the country. The rationalization of the big banks was the other issue that the company had to put up with, leading to an increase in the amount of debt that the company had. The people wondered why a union that had built its reputation based on the unity and togetherness have some of its countries face such a dangerous state. Many other countries that were not part of the union tried to understand the reasons as to why the country could be faced with such a danger. The unevenness that was throughout the Eurozone was about the experiences of the crisis.
3.1 Setting the StageThis chapter will seek to give the highlights on the significance of Europe joining the European Union as well as the Eurozone states. The main aim here is to establish all the historical and legitimacy and economic fundamentals to have the experience that Europe has had. Just as I have mentioned earlier, there is the need of looking at the legitimacy and economic and political backgrounds of the state of Europe. This is done regarding having the experience in the crisis regarding the applied bailout.
The importance of Europe as a member of the European Union can be traced back to when the country became a member of the EU in the year 1973. It was during this period that here was the energy crisis as well as the global recession. The members of the European Community have been legitimacy and economically attractive for Europe during the time as the Greek government was putting in place some of the national projects and modernizations. Also, the Europe government was pushing for the issues that would help in making the market for the Europe goods larger so that the country can be able to sell its goods at the international level. The country had wanted its goods to be sold abroad for quite a long time.
Politically, the membership that the Greeks had with the European Community, meant that they had to pull away from any other union. This rule also applied to Ireland that had to pull away from the United Kingdom.
The pull away had several impacts on the issues of traditions and nationalism. Europe was less developed as compared to other European economies such as France and Germany. The country was primarily agriculture-based before it joined the European membership. Therefore, the European membership was an opportunity that these other countries gave Europe to catch up with the rest of the developed countries. Legitimacy and economically, it got the opportunity to join up with the mainstream European nations and it would make Europe more urbanized and can eventually get industrialized just like the other nations.
Europe saw this and was the tenth member of the European community an agreement that was signed in the year 1981. With the country having wanted to become a member of the community as early as 1975, the country had to deal with other concerns that were raised before it could become a member. Some of the issues were to do with the legitimacy and the economic state of Europe. It was viewed to be an economy that was less developed and therefore was a poor state this would mean that it will present a threat to the cohesion of the legitimacy and economic integration processes. The initial opinion that the European Community had on the access of Greek was positive. However, the same combination had initially proposed the institutionalization before the access to enable the transition. This was to happen before there was the full integration to enable the needed legitimacy and economic reforms.
3.2 The development of Europe in the European Union IntegrationThe development of Europe joining the European Union was meant to mitigate the possible threats that would be posed by the weak economy that the country has. Even though the country had the weakest economy, there were various ways I which the European community realized that they would benefit from Europe. Having Europe as a member of the community, it would provide the opportunity for the expansion of Western Europe and the border. It would also improve on the influence that Western Europe had on the east due to the international politics that was taking place within the containment of communism and the expansion of the Soviet Union. This was a key strategy for the western. Just like the other weak economy in Ireland, Europe saw the opportunity to modernize its economy and demonstrate the independence that it had in the region this was because there were several threats that were presented to the country by the neighbours such as turkey. Turkey had earlier invaded Cyprus in the year 1974. The members of the European community would ensure that the country is safe from these invasions. They provide stability in the foreign policy as well as the necessary financial assistance to the embers Europe would hence get the financial assistance that it would use for building its infrastructure.
Even though the crisis had been postponed the money that the country required to get out of the debt situation that it was in was too much. This means that the credit agencies had to downgrade the bond debt that Europe was in. The European Union and the International Monetary Fund relies heavily on the bailouts as well as the austerity measures that are needed to combat the various crisis in case they are unsustainable. It also becomes more evidenced when the crisis becomes even worse. The other issue that has also been a concern for Europe has been the currency. The instability in the country is having the negative impact on the value of the euro. This has led to many people questioning the future of the Eurozone with the increase in the debt of Europe. The investors are losing confidence due to the significant weakening of the euro. This has also led to many people questioning the future of the economies in the Eurozone because Europe is falling further into the debts.
Consequently, there was a more positive political support that the Greek had for the accession. Most importantly, the Europe accession later appeared to be more political as it had more political benefits than it had the legitimacy and economic benefits. According to the statements that were released by the Greek Ministry of Foreign Affairs, it was an important process that Europe had a better European integration. This meant that the country could see itself as a European nation. Presently, this membership has been proven to have numerous positive benefits such as having an impact on the Europe politics. The politics are more open and transparent. It is also less centralized in the political system. The National accession that the country took to the European Union happened periodically from the time of its inception because of the demands of the treaty that was signed by the European Legitimacy and economic Community. It is this European Legitimacy and economic Community that was morphed gradually, and it became a body that is more politically connected as it changed its name to The European Community. The legitimacy crisis of Europe as well as the economic crisis on the other European nations by expanding on the issues behind the financial crisis in Europe it has also given the measures that the European nations have taken to ensure that hey counter the sovereign crisis and improve the stability of the Eurozone. However, the much political and fiscal integration coupled with the methods that are implemented is meant to help in the crisis there are methods that are used by the nations including the imperative in the sanctions implementation.
The decision by the Eurozone to intergrade Europe into their membership is one that most of the member nations are regretting. The country has a long history with debts that have tainted its growth for quite a long time. There was a period that it had a long legitimacy and economic growth this was between 2000 -2007. However, the global crisis that took place in the year 2008 exposed some of the country’s spending habits that were poor. It brought about more debt to the country that was above 468 billion dollars. From the year 2010, the country has needed numerous bailouts and other external funding in the form of financial aids to help it prevent having a default on its debt. Most of its bailouts have come from The EU, the IMF, the CB, and several other wealthier members of the Eurozone. The funding has been in the fork of loan most of these bailouts and benefits have been given in exchange for Europe agreeing on the implementation of the austerity measures. The measures have been put to prevent the country from getting more debt and help it in reducing the expenditure.
In the last years, the euro has been downgraded regarding its value when comparing it to the US dollar. The Fear of the contagion among the Greeks seems to be the key. However, the Greeks are aware that they cannot leave the Eurozone as the exit will result in more exits of the other countries. Because of this, the debt of Europe and its crisis have decreased the stability of the European Union because the investors are pondering the impacts that the default will have on the legitimacy and economic relationship that exists between the members of the Eurozone member as well as the international community.
The main Eurozone governing bodies have been criticized because of several reasons, including the lack of political leadership in different countries. They have also been criticised for the lack of government in the divisions that are within the Central Bank of Europe. The financial markets are showing concerns the main political structures and are not concerned with the legitimacy and economic issues that are already at hand.
The main problem that has been affecting the union is the lack of security in European integration. They did not properly monitor the fiscal policy and the situations of the Eurozone national members. There are recommendations that have been set by the members of the budget deficit. However, not all the nations abide by these recommendations. The values that have been set by the Eurozone are not law abiding meaning that the countries do not have to observe them. Many other countries continued to worry about the instability as it would likely create a domino effect that would spread across the world from Europe. This had made many of the European nations to even worry more about the status of Europe. Not only did the legitimacy and economic instability create an international financial mishap, but it also meant that most of the other nations would have to suffer because of Europe.
4 Methodology4.1 Questionnaires The application of the correct research methodology plays a vital role in this case. It is appropriate for the research team to ensure that they look for an accurate way of collecting the required information. The use of qualitative and quantitative data collection would be appropriate in this case. It would entail the creation of specific measures that work at addressing the reasons why the application of questionnaires would be appropriate in this case. The research team focused on the questionnaires owing to their high rate of effectiveness which leads to the collection of the correct set of data for the research. It is appropriate to apply questionnaires based on a scale of the research as for specific target people. Therefore, questionnaires would appropriate.
The research team opted to focus on the technique based on the high level of reliability associated with it. The reliability is based on the collection of first-hand information that is required from the target population. The individuals give out their views in the most appropriate manner. The accuracy level related to the application of the research is suitable based on the fact that it is indispensable to the general success of the research. Most researchers apply the method based on the fact that appropriate information would be collected for the research that is a relevant aspect to put under consideration based on the research nature. In this case, the look at the European legitimacy crisis would involve the analysis of various sectors in the European economy using the appropriate means.
The decision to apply the questionnaires was derived upon after the research team realized that the application of it would result in the collection of the appropriate information that would be used in the paper. It is important to comprehend that factors that prevail in the usage of the questionnaires. The research team focused on the aspect based on the circumstance that the group of reliable information would be based on the approaches that they would apply to specific matters that surround the overall information that is required for the paper. Majority of the question asked would base on the people opinion about the matter at hand. It is important to comprehend that various complications are involved in the collection of the correct set of information in this case.
The application of questionnaire as a quantitative method is based on the high level of accuracy. The use of the research methodology has a high level of accuracy that most individual prefer based on the high level of effectiveness that is associated with it. It is essential to include the vital aspects of the research by coming up with an appropriate means of analysing the paper. Several factors are included in the application of the method. It would result in the collection of the right use of info that the researchers would apply in their final analysis. Each researcher recommended the research methodology owing to the high level of accuracy that it would give to the final results of the paper which is a positive aspect.
The selection of the appropriate target participants would be based on the overall understanding of the people that understand the situation. The research team would ensure that they come up with the correct target market in which they would effectively utilize to create the appropriate settings that would work for the benefit of the research. The identification of the target participants would be an effective process that incorporates the overall understanding of how the market works in coordination with the issues that surround the European economic affairs. The aspect is critical as it leads to a realistic line of understanding that incorporates factors which would enable the research to be based on accurate information only.
The target participant’s identification process would take a total of six days as the research team would have to understand the specific group that they would involve in the paper. Numerous discussions would be held on the appropriate means in which the research would prevail leading to the identification of the correct set of results that would be essential for the paper if it is understood in the correct manner several factors are incorporated in this aspect based on the nature and complexity of the matter. The six-day selection process is important to assist facilitates the identification of the correct target participants in a correct way that is equally beneficial to the paper. It is important to comprehend that real issues are involved here, so the documentation of the correct target is essential here.
The questionnaires would be distributed to the correct parties that were involved in the crisis. The inclusion of the parties would have its basis on the overall understanding of the main issues that surround the legitimacy of most situations in the country. Ideally, the implementation of several factors is grounded on the considerate of the complexity of the situation. The research team would distribute the questionnaires on government institution. The distribution on the institutions is based on the datum that they are the key individuals that understand the state in a broader perspective. Ideally, it is the correct decision to ensure that the questionnaires are distributed to the institutions because they understand the economic sceptic and significance of the crisis on the content.
The choosing of the countries that would be researched upon is appropriate in this case. The understanding of the factors is essential as it results in a proper line of understanding that is reliant on several issues that involve the appropriate selection of the information. The chosen countries, in this case, would be Britain, France, and Germany. This is because they are key powers in Europe that contain a critical say on matters that involves the administration of the organization activities within the country. The distributions of the questions on major governments’ institutions in the country would guarantee the collection of the correct set of information in the research. The distribution would aid in the collection of diverse and accurate information.
The top managers of 30 government institutions would be asked to give their response about the opinion in regards to the situation that was affecting the country. 7 of them would be from government institutions in Britain, 7 of them would come from Germany while the other remaining ones would come from France. Ideally, it would enable people to be accurate on the information that they were collecting as the chosen people have a broader understanding of the situation that was affecting the country. Several factors are involved in the distribution of the questionnaires based on the sympathetic of key factors that involve the presentation of the correct information which would be founded on accuracy and reliability.
The questions asked would reflect on the existing situation. The researchers would create questions which focus on addressing the key issues that involve the overall management. It is indispensable to understand that several factors would be involved in the correct set of information collection. In most cases, it reflects on the key issues that pertain to the overall understanding of complexities involved in gathering specified information that pertains the overall understanding of existing situations correctly. A look at the structure of the questionnaires would explain the high level of effectiveness that would be adopted in the collection of the correct set of information to be analysed for the research by the research team. It is important to comprehend that the wrong of questions would be the collecting of the required data about the research in the correct manner.
The use of questionnaires would also serve well in this research. The paper would ensure that it entails the use of questionnaires based on the high level of accuracy associated with the matter. It is imperative to understand the factors involved in the gathering of the correct set of data in this perspective. Several aspects are included in the understanding of the issue. Several factors need to be incorporated in the matter based on the high level of complexity of the research. The research team would ensure that they have a perfect set of interviews with the chosen target to facilitate the creation of appropriate research that would enable a [proper understanding in the involved parties through the correct patters.
Researchers would ensure that they use questionnaires in the most appropriate ways basing on the effective rate that is associated with every critical matter in this case. The paper would entail the key aspect of research because the identification of the correct respondents would effectively take place in this case. The research team would ensure that they identify the correct respondents to facilitate the creation of an appropriate way of understanding the situation in a broader perspective. Several factors would be needed basis on the fact that several complications are involved in the collection of precise information for the paper. In most cases, it would entail the actual understanding of economic situations and the key government players that are involved in this perspective. Therefore, the use of interviews would be appropriate in this case.
The use of the methodology is preferred owing to its high rate of effectiveness involved in the collect of first-hand information which essential for the research. It is vital to understand that several factors are involved in the collection of the appropriate information in this case. The research team needs to every organized in a way that they would conduct effective Interviews with the correct individuals. The reach team would be alienated into a collection of five the group would conduct several interviews on the two management of chosen government institutions. The key targets would be the top management of the institution founded on the circumstance that they are the key individuals that have the correct set of information that pertains to the cause of the crisis.
The top management would be asked key questions about the situation in Europe in the questionnaire. They are required to give their opinion about the situation in the country. In most cases, it is essential for them to come up with n an appropriate way of making determinations to key issues that surround the creation of reliable management sceptics which is vital for the paper. Several initiatives are required in the creation of the point based on the key level of complexity intricate in the matter. Ideally, several matters are involved in the creation of key points that surrounds the overall organizational settings of the corporation. Ideally, it creates a broader line of understanding that makes the paper to have a reliable set of information that pertains to the conducted study.
The use of individual-based questionnaires would also be quite appropriate in this case. The use of the mechanism is effective based on the circumstance that it facilitates the collection of the correct set of information for the research. The application of the technique is based on the understanding of the matters that pertains to the overall management of country economic objectives in relation to the surrounding matter at hand (Symons, 2011, p. 177) It leads to a reliable set of information that could be utilized through the use of appropriate means to increase the level of accuracy involved in the research. The research team would construct survey on the existing European situation and understand the matters that involve the creation of the correct set of information through the use of appropriate means.
The factors that surround the accuracy of the paper is essential. This is because it leads to the collection of the required set of information that could be adopted for the paper in the most appropriate way. Majority of people prefer the use of surveys based on its ability to collect reliable information that could utilize in the most appropriate manner to create a higher level of reliability which is appropriate for the paper based on the key matters involved in the collection of information. Each administration schedule is based on the sympathetic of key matters that surround the efficiency of each situation at hand. Ideally, several factors are involved in deciding to implement the means. Ideally, it elucidates the necessity of creating information that is based on the realistic understand of the prevailing situations today.
The request for the correct methodology is appropriate in this circumstance it facilitates the creation of the appropriate data collection tools that could be used for the benefit of the whole situation. It results in a perfect line of understanding that would be appropriate if the research team would make the discussion to apply the data collection methods at the correct time. The whole issue requires a perfect strategy which is essential in the creation of the required rate of sufficiency that is involved in the collection of the information in the most formidable manner which is effective for the whole paper. The determination made in this case relies on several important aspects.
The use of questionnaires is effective founded on the fact that the information collected here has a level of accuracy. 87% of accurate information is collected through the use of the mentioned mechanism based on the understanding of the complexity of the situation in the required manner (Barresi, 2015, p. 151). This is effectual as it creates a realistic line of understanding that is beneficial for the whole research. In most cases, the application of the data collection method results to the accurate research which would be beneficial for the whole paper research. Therefore. It is significant to understand the sceptics involved in the collection of appropriate collection techniques. The application of surveys leads to a high level of accuracy that is essential for the paper.
4.2 AnalysisCauses4.2.1 Economic Sphere The results of the questionnaire gave a clear indication of the existing challenges that led to the European Union crisis. Apparently, the results explained that the economic sphere in the countries resulted to the creation of the crisis. The 20 respondents explained that the economic sphere of the country is the key reason behind the economic crisis. The understanding of the matter explains the complexity involved in coming up with precise explanations that led to the situation (Barber, 2016, p. 110). The results indicated that the economic spheres in major economies within the union affected the activity in a negative way leading to the creation of the economic crisis within the continent. The managers were clear n their response as they indicated the dominant issues that surrounded the creation of the preferred set of the solution in this manner.
The managers explained that the economic crisis in the union took place because of the diminishing factors that seemed to affect the manner in which the operations of the organization effectively took place (Barrueco, 2015, p. 151). It is a matter of concern based on the fact that the respondents explained the complexities that are derived from creating a perfect economic system. Respondents from Britain explained that the economic sphere is the clear issue that led to the Brexit. It is a key issue that highlighted the discomfort that existed while operating under the European Union. Ideally, it leads to the creation of a major interest in the manner in which activities were effectively coordinated. It is essential to consider the factors.
The questionnaires gave the results that the countries within the European Union were experiencing low productivity levels. It is an issue that affected the overall trade in the country. The understanding of the matter is essential based on the fact that numerous complexities are involved in the creation of specific goals. The understanding of the matter is reliant on predominant goals that need the creation of specific sceptics which are essential to the overall operations of the union. Countries such as Spain and Italy were experiencing minimal returns on the investments that they were expecting within the organizational sceptics. It affects the general exports and imports in the free trade zone which is a crucial aspect that demands a [proper conceptualization of the situation.
The results also indicated that the economic sphere also affected the consumption rates. This affects the general market structure of the country which I an essential factor to put under special consideration based on the high level of complexity involved in coming up with appropriate factors that surround the sales of the products. The decline in consumption rates means the decline in the general demand for the company products. It is an essential factor to place under consideration based on the high level of complexity involved in the creation of a reliable market that could work for the benefit of the company. The understanding of the factor is an essential matter of concern basing on the complexity involved in the situation.
The respondent’s results explained the minimal accumulation of resources and the scarcity of labour that was associated in the paper. It is a vital factor that relies on the understanding of several factors which is vital for the operations of the country. It is fundamental to understand that the operations of the union were affected by the labour scarcity which is essential in the manufacturing sector. The issue led to the creation of an economic crisis that is vital to effectively understand and accommodate (Duncan, 2013, 178) various factors are involved in the creation of the correct set of targets based on the level of complexity involved in controlling vital operations within the European Union. Therefore, the economic sphere is a clear issue that affected the operations of the EU negatively.
4.2.2 Socio-political environment The political environment of the European countries within the union is the key reason that led to the crisis. The questionnaire results elucidate that the political climate in most countries affected the trade in the region. It is essential to understand that the most dominant factor, in this case, is the question of Brexit. It explained the level of dissatisfaction that the countries had about the existing situation that the union was facing. It led to the creation of differing opinions that focused on addressing the key issues that involved the creation of factors that did not consider the matter in a broader perspective. Therefore, the political climate in the region affected the European Union in a negative way.
The respondents in Britain explained how the socio-political climate in the country was against the union in the country. This was based on societal matters of concern that revolved around the creation of specific goals and objectives of the politicians in the country. The respondents explained about the negative perception that the people had in relation to the existence of immigrants in the country (Khan, M. 2017, p. 159) It is a key issue because they affected the employment pattern in the country in a negative way majority of the people in the nation did not have a clear way of understanding the manner in which the immigrants were offered better deals compared to them. It led to the creation of a political debate which leads to the Brexit referendum.
The questionnaires also indicated that the socio-political environment of the country contributed to the situation in a negative way. The respondents explained that most politicians in the European Union countries were focused on creating a better system that did not involve the integration. The issue affected the status of the EU negatively because a lot of people were against the existence of the union (Iglesias-Rodriguez, 2012, p. 101). They influenced the public against the union. It is the domain issue that took place during Brexit. Ideally, the economic status of the nation reflected a negative figure which was vital to understand in this perspective. Countries such as Spain and Italy showed a general interest in pulling out based on the complexity of the matter.
The questionnaires explained that the fiscal sphere had a key part to play in the overall setting of the position of the matter. The reluctance of the government of most countries within the European Union to come up with a system that favours the trade is a contributing factor. The government taxation rates were raised on a daily basis affecting the general economic structure of the country it is an essential factor to understand that there are dominant issues that relate to the creation of specific matters that lead to the creation of the crisis. The taxations rates in countries such as France seemed to be high despite the introduction of economic friendly policies by the union that discussed on addressing the European Union issue.
The questionnaires explained that the taxation rates were quite high and they seemed to make the trade difficult. They are creating trading barriers that led to the fluctuation in the imports and the exports done by the country. The understanding of the matter explains the essentiality of coming up with a reliable line of trade that is dependent on various issues that surround effective trade and other dominant goals (Symons, 2011, p. 176). It is effectual to broadly understand the matter owing to the high level of complexity involved in the creation of appropriate goals and objectives. The government policies which seem to reflect on the complexities involved in the creation of better trading relationship and income generation. Therefore, it is essential to place the key terms under consideration based on the government interventions on the matter.
The questionnaires indicated that the increasing rates of inflation affected the EU in a negative way. Ideally, it led the government to impose specific matters that relate to the matter in a negative way. The conceptualization of the concept is reliant on the manner in which the society integrates key matters with the issues affecting the general structure of the country (Ward, 2016, p. 152). It led to limited government borrowing which led to minimal trade activities in the country. This is the key issue that led to the creation of negative perceptions about the operations of the organization. Therefore, the situation depends on the general understanding of the critical matter regarding trade relations and other factors.
The questionnaires on the market of the country explain that the use of the euro as the main current seem to affect the countries negatively. Their currencies seemed to be affected negatively based on the complexity involved in coming up with appropriate goals and targets that relate to issues of the current position within the global market. It affected the union in a pessimistic way (Barrueco, 2015, p. 141). It led to the decrease in the currency value in a way that seemed not too beneficial to the organization. The understanding of the matter is therefore beneficial in this case owing to the complexity involved in the gathering of vital information.
4.3 Solutions The need to provide a quick solution to the matter is fundamental in this case. The issue relates to the general understanding of the complex situation that involves the creation of a realties manner in which the solution to the matter would be based on. The questionnaires explain that the use of structural reforms would be effectual in this perspective. The structural reforms would be based on the complexity of matter in response to the understanding of dominant situations that involves the creation of the correct line of operations several factors need to be placed under a broader consideration based on the fact that there are numerous complexities involved in the allocation of the correct solution to the matter (Duncan, 2013, p. 141). The respondents explained that the use of structural reforms would act for the benefit of the whole organization.
The structural reforms that would be implemented in this aspect involve the general understanding of the dominant factors that involve the structural changes is essential in this case. The major participants in the matter should ensure that the reforms should touch on the labour market. This is based on the manner in which countries use the labour. In countries such as Britain better, offers were made about Brexit (Herwig, 2013, p.121). The main issue that led to the exit is the poor labour market strategies that the union had in place. It affected the overall set of the body negatively. Therefore, the changes in the labour markets are essential.
The labour markets are supposed to mould in a certain way that is beneficial to the economy should be implemented in all countries across Europe. They should be more responsive and efficient in the manner in which they address critical matters that involves the overall management of the issues that face the countries. In most cases, the policies of the labour markets are moulded poorly in such a way that they affect the overall economic set up of the country in a negative way that is not beneficial to the setup of the European Union economy. Several factors that need to be considered include wages and allowances for the immigrant employees in the country. Therefore, the findings indicate that the issues need to be conceptualized more broadly.
The EU needs to encourage innovation among the member states. It is a key issue that would lead to the economic success of the involved countries based on the fact that several complex issues are normally involved in the creation of the appropriate goals that effectively relate to the matter. Technological and industrial innovation is greatly encouraged owing to the high rate of return associated with the operations of the EU within the member states (Føllesdal, 2014, p. 151). This is essential as it leads to a broader understanding of the situation based on the required strategies that need to be implemented in the most appropriate manner that seems to encourage innovation and diversification among the member states in the country through the use of the correct channels.
The need to improve the political image of the union plays an elucidative role in this case. This is an essential matter of concern that needs to be explained in a broader perspective. The implementation of the correct goals is reliant in the manner in which the issues are understood in a broader perspective. The activity includes the holding of regular meetings to understand the nature and complexity of the situation in the correct way. EU has taken the initiative of holding the Annual meetings on a regular basis (Ward, 2016, p. 111). It works at eliminating the existing political differences and coming up with a precise manner of handling the situation in the most appropriate way that is beneficial for the research team. Therefore, the understanding of political repairs is important.
The annual meeting work at creating a realistic podium in which the member states could resolve their economic differences and come up with a better understanding on how they would deal with the issue in the most effective manner which is important to understand. Ideally, it aids the creation of a perfect line of understanding which is essential for the existence of the paper. Several factors are involved in the implementation of the correct goals for the body (Chopin, 2013, 191) ideally; the meetings would resolve the situation and reclaim the political status of the union in a positive way that is beneficial for the overall economies set up of the union. It would reduce the rate of the crisis through the use of the most appropriate manner that is essential to understand.
The creation of a perfect economy within Europe involves the inclusion of corrects strategy that would effectively address the matter. The issue is reliant on the overall understanding of how the economy of the works. It would lead to the creation of economic situations that are essential to include in the overran; economic setup. The issues are related how the society perceives the union. Ideally, it leads to the creation of a perfect set up that is reliant on several aspects that require a broader explanation (Ward, 2016, p. 112). The inclusion of the strategy creates a free trade policy that includes the interests of all the members if the EU in the most positive manager that is essential in this case. Ideally, it is important in this case that the issue is resolved.
The implementation of new policies that work at creating fair terms of trade is important in this aspect. They lead to the creation of a broader line of understanding in the trading matters of the EU. Today, the majority of parties ensure that they understand the economic needs of each member’s states. The understanding of the needs ensures the creation of fair policies that work at creating a perfect line of trade that is important in the general overall opinions that relate to the understanding of major societal issues in this case. Ideally, it is important to include the aspects based on the understanding of the issues that surround the creation of perfect trade and other important elements of trade that is essential for the practice.
4.4 Discussion The solution to the crisis relies on the effort that the union would make in effectively addressing the matter. It is essential to include the key issues that pertain to the understanding of the dominant factors that surround the creation of appropriate techniques in which it would be used to ensure that a realistic set of information would be perfectly implemented. The understanding of the latter relies on the policies that have been implemented to understanding the issue. Numerous factors are involved in the understanding of the situation in a broader aspect. Ideally, the responsibility lies with the European Union based on the fact that it would address the key aspect that involves the matters that concern the overall security of the union.
The crisis was a major setback to the operations of the union within Europe. This is because most countries underwent significant losses in the effort of dealing with the matter in the most precise manner. It is essential to understand that the latter relies on the overall understanding of the key organizational operations. In most cases, the creation of a solution would depend on the understanding of the problem at hand, and the perfect solutions that would be offered to the situation. The EU should work at minimizing the causes and come up with a perfect way of working on the strengths in the most effective way that is beneficial to member states. The understanding of the key issues is essential as it results in the creation of the appropriate solutions to the matter.
The manner in which the issue is addressed would determine the future position of the union in global affairs. The crises affected the status of the union as a major economic block. It demanded the creation of the correct set of solution to address the matter in the most effectual way. A look at the solutions effectively explains the issues at hand and how they are supposed to be handled. Ideally, it is essential because it facilitates a broader line of understanding and how the matter is supposed to be handled concerning the matter at hand.
The dimensions of citizenship dress the means of considering the citizenship possibilities and what they can do for their countries depending on the level of legitimacy. The crises have also been made worse by the decision of the United Kingdom to quite the European Union through voting for Brexit. This process of voting is one of the things that have made the people make the argument of the true existence of the legitimacy crisis. The fact that the decisions were taken by the people themselves shows that they have no faith on the other people who are charged with the responsibility of dealing with the citizens. The issue of the xenophobic popularize has been quoted to be one of the keys to the changes in the crisis legitimacy. The debates have been carrying the most hysterical characters that cannot be mentioned in other arguments. Apart from the European stability, there are also other threats such as the political and security threats that are posted by the outcomes of such measures. There were several countries that were able to exit these bailout programs due to their growth and development and the improved deficits. Ireland and Portugal all managed to exit the programs in the year 2014
In summary, from the 2000s, the economy of Europe as one of the European nations was one of the healthiest in the region. The economy of the country was growing at quite a faster rate compared to other countries within the Eurozone. The GDP of Europe declined by 7 percent (-7%) when the season had adjusted through the industrial output. This thesis will analyse the challenges that have been presented to the Greeks as the small and weak economies that are within the Eurozone from the period of the 2010 European debt crisis. The need to provide a quick solution to the matter is fundamental in this case. The issue relates to the general understanding of the complex situation that involves the creation of a realties manner in which the solution to the matter would be based on. The structural reforms that would be implemented in this aspect involve the general understanding of the dominant factors that involve the structural changes is essential in this case. The EU needs to encourage innovation among the member states. It is a key issue that would lead to the economic success of the involved countries based on the fact that several complex issues are normally involved in the creation of the appropriate goals that effectively relate to the matter.
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