Globalization as an economic situation worked well in blooming and expanding the trade. Commercial activity featured almost all of the global economic activity, associated countries and political systems, offered shared ideas, images and social habits on people and communities. Globalization based on total capitalist economic models and on cyclical interpretations of economic activity.
There were financial systems in certain countries, which operated with a sense of the need for fiscal discipline, but there were systems, whose culture does not link to timeless economic adherence.
What caused the financial crisis?
In an environment of intense need for profit, intense competition and tight interdependence, the idea of the crisis is a mistake, which practically does not need to be done.
Usually the crises caused by random events, which are critical points when collecting a wide range of economic activity and a high amount of concerns.
Forexamplethe crisis ofLehman Brothers was an economic event of high importance and scalable risk, just because Lehman had created tight interdependence and gathered the global economic interest.
The extroversion of Lehman meant that its international “partners” had absorbed a certain degree of “contamination”, which essentially meant credit for nothing. This appropriation is directly translated into a sequential credit for nothing.
I thus place, here, a starting point of the new political and economic developments on a global scale.
Indebted economies have been since 2008 the global benchmark. The international agenda was economy and external tensions in the Middle East and North Africa. After the US, Europe wondered to what extent has been affected and how intense is the economic problem which is about to be faced. And so begins the intensification of a debate within EU, which has always existed, but from that moment, it became a priority.
While, by that time, the leading European debate included the need of social and territorial cohesion, the politicization through a Constitution, from now on everyone will talk about the economy, the construction of economy, about shielding the economy. The story is known through the examples of the difficulties that Ireland, Portugal and Greece faced after 2010.
The intense political problem concerns the way in which the global political system might have ruled until now.
Some countries have banking problems, other countries have debt crisis problems. All entered the microscope and all the institutional weapons of global governance were used in order to find solutions and to normalize the global economic problems. However, despite the overall picture, each country represents a discrete system, with specific policy needs.
Different efforts have been used by the leardership to address the economic problems in the US and a different approach was attempted in the eurozone.
The US economy cannot be compared to the Portuguese economy or the economy of Greece. The main global competitors are the US economy and the euro area economy. There is a tight antagonism, there is an economic, competitive environment.
The purpose of the eurozone is to resolve and enforce compliance of fiscal aggregates in each member country in order a total additive sum of the eurozone to be equally strong to that of US or China, for example.
Simply, Europe had to fix its members.
The crisis in an EU member state is a small point, but crucial enough to the EU’s overall economic policy.
The decision for the accession of an EU national economy in the eurozone over time was a conscious national decision, as determined by the financial assurance, which have been given by a major player such as Europe. However, nothing is simple when convergence in fixed data is required of more than one player.
The inability to establish a common constitution was indicative of the reluctance to the EU political integration, member states gave expressed.
Possibly the responsibility lies with the policies of the member states in relation to the low degree of their assimilation to a common European idea. As general as this sounds, when people are called to leave an earlier, good or bad attitude and to follow by faith and good will the new rules, sometimes strict enough, the formation of a new ideological framework and the integration of people in this frame are required.
Many people in Europe did not recognize the institutional force of the EU policy as this has being drawed by the Commission and Parliament. They have not understood that the directives and regulations are laws, the violation of which involves legal punishment.
Nothing managed to beat the national policies of member states in Europe from 1950 onwards. And today in the attempt of an economic rationalization, the main political derivatives are populism, extremism and electoral ruin many of the European parties at national level.
Of course this is a general discussion on the party dealignment. However the rise of populism and extremism are not answered by the generalized trend of the lack of political confidence. When the personal, social and economic gains are lost, the political behavior changes determination. And here, it is the crucial political point.
There is two-way political responsibility. Through crises, solutions are promoted. Economic prosperity is the solution for straight deal of populism. It is required a brave position of all member states, which want to be in the eurozone, on the need for a Europe.
How can this be when only the image of Europe is facing a terrible crisis? There is no such a thing as new image to be fixed. It is required a European reason, consistency and tolerance.
It is required, even after so many decades the development of a European standard. Unfortunately, all this cannot be done without the political will for a Constitution, which will unite and promote European ties.
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