Presentation Title

Fiscal Disadvantages and Advantages of the European Union

Faculty Mentor

Brittany Hubble

Start Date

23-11-2019 10:00 AM

End Date

23-11-2019 10:45 AM

Location

9

Session

poster 3

Type of Presentation

Poster

Subject Area

behavioral_social_sciences

Abstract

The European Union holds distinct fiscal advantage and disadvantages to European Union members. However, do the advantages outweigh the disadvantages?

The 2009 Eurozone crisis displays the European Union at its worse. Greece radical safety net spending and tax cuts forced them to declare that they were at the brinkmanship of defaulting on its debt. Their GDP to debt ratio was three times higher than the average, and their unemployment rate at 27.5% However, their failed economy didn’t only affect them but nearly all countries in the EU. Foreign investment and the value of euro plummeted creating economic downfall for all European Union members. The EU had little choice but to guarantee all of Greece’s debt, in other words, payback Greece’s loan, a controversial decision leading Britain to leave the EU.

Nearly a decade later, Europe has nearly recovered, but the Eurozone crisis continues to shadow over their decision. With Britain to officially leave the EU on March 29, 2019, the EU future is faced with uncertainty.

As important it is to recognize how each European Union country is dependent on each other, it does have it’s advantages. Since the EU is composed of economic powerhouses, for example, Germany, Italy, and Spain, investors recognize these countries as a safe investment and thus this leads to an increase in foreign direct investments while interest rates are low. This fiscal environment encourages spending and allows EU members to develop and grow.

Overall the European Union has a rich history of creating economic growth and stability for all members of the EU. However, if a fiscal disaster were to occur, all countries would be affected, and thus are responsible for the cleanup.

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Nov 23rd, 10:00 AM Nov 23rd, 10:45 AM

Fiscal Disadvantages and Advantages of the European Union

9

The European Union holds distinct fiscal advantage and disadvantages to European Union members. However, do the advantages outweigh the disadvantages?

The 2009 Eurozone crisis displays the European Union at its worse. Greece radical safety net spending and tax cuts forced them to declare that they were at the brinkmanship of defaulting on its debt. Their GDP to debt ratio was three times higher than the average, and their unemployment rate at 27.5% However, their failed economy didn’t only affect them but nearly all countries in the EU. Foreign investment and the value of euro plummeted creating economic downfall for all European Union members. The EU had little choice but to guarantee all of Greece’s debt, in other words, payback Greece’s loan, a controversial decision leading Britain to leave the EU.

Nearly a decade later, Europe has nearly recovered, but the Eurozone crisis continues to shadow over their decision. With Britain to officially leave the EU on March 29, 2019, the EU future is faced with uncertainty.

As important it is to recognize how each European Union country is dependent on each other, it does have it’s advantages. Since the EU is composed of economic powerhouses, for example, Germany, Italy, and Spain, investors recognize these countries as a safe investment and thus this leads to an increase in foreign direct investments while interest rates are low. This fiscal environment encourages spending and allows EU members to develop and grow.

Overall the European Union has a rich history of creating economic growth and stability for all members of the EU. However, if a fiscal disaster were to occur, all countries would be affected, and thus are responsible for the cleanup.