The Impact Of Greek Financial Crisis On The European Union

The Greek financial crisis of2009had a huge impact on the EU. My researchcontains the process, causes, and influence of the Greek crisis on the EuropeanUnion, and also how the EU should deal with the crisis as well as what kind of newsystem they should develop to prevent the crisis from spreading further.After researching reasons and the process of the financial crisis, I discoveredthat the impact of the Greek crisis has two profound aspects: micro and macro. Onthe macro level, the crisis has had an impact on the euro zone currency, other eurozone countries and their own debt crises, the level of investment in euro zonecountries, levels of GDP, EU’ inflation levels, the EU countries’ unemploymentrates, the trust in the EU system and the economic recovery of the EU. On the microlevel, the Greek crisis has had an impact other countries’ consumption rates,employment rates, income levels and has had an effect on people’s living standards.The Financial Crisis of Greece reflects many EU’s internal problems. The firstone is that there is no financial system adapting to the single currency. The problemalso includes lacking regulatory mechanisms and crisis response assistancemechanisms and EU Members’ systematic shortcomings. The leak of regulatorymechanisms gives Greece a choice of cutting the governments spending or leavingthe Euro Zone, the same leak gives EU only one choice; cash support. Both sides’choices have positives and negatives. The EU’s new system should be based onestablishing a unified financial super-sovereign system, to become a comprehensivepolitical union and also the EU should improve its supervision and managementmechanism.