European integration and the financial crisis: Government crisis management: balancing societal influences global markets

For decades, the cross-border interconnection of global economic activities has been a contributing factor to economic crises around the world. The economic and financial crisis, which began in 2007 with the collapse of the US property market, led to a drastic rise in public debt across European countries. The subsequent crisis management efforts were met with an already divided Eurozone, in which countries such as Greece concealed their lack of competitiveness under the guise of low interest rates provided by the euro. Despite the success of monetary union, the Eurozone had failed to establish a common economic policy. This fundamental structural problem was now compounded by further crisis-induced debt. As the crisis hit individual countries, governments responded with individual measures. Despite being aware of the interdependence within the eurozone, national economic stimulus programmes were launched. When the crisis appeared unsolvable at national level, member states began to seek intergovernmental solutions, which became supranational in the course of the crisis.