The global financial and economic crisis and the main priorities of the European Union for 2020

• Author: Constantinescu, A. - Constantinescu, L. A.
• Position: Dept. of Economy, Lucian Blaga University of Sibiu - Dept. of Finance and Banking, Dimitrie Cantemir Christian University
• Pages: 171-174

Bulletin of the Transilvania University of Braşov • Vol. 6 (55) •No. 1 - 2013

Series V: Economic Sciences

THE GLOBAL FINANCIAL AND

ECONOMIC CRISIS AND THE MAIN

PRIORITIES OF THE EUROPEAN UNION

FOR 2020

A. CONSTANTINESCU

1 L. A. CONSTANTINESCU2

Abstract: This study focuses on the global financial-economic crisis and

the main prior ities of the European Union for 2020. The duration of a

financial economic crisis depends on the macroeconomic factors taken into

account, because their representa tion can h ave multiple nuances, generated

by subjective and political influences. The financial and economic crisis had

a significant impact on public finances, business, jobs and families. At all

levels, the decision makers in public policy will have to find ways of

triggering economic dynamism, while the margin of manoeuvre in what

concerns the budget is limited. As the recor ded deficit in the public sector

will be again under contr ol, public expenditur e will be such orga nized tha t

the targ ets for 2020 ar e met.

Key words: financial economic crisis, eco nomic politics, str ategy,

globalization, knowledge.

1 Dept. of Economy, Lucian Blaga University of Sibiu.

2 Dept. of Finance and Banking, Dimitrie Cantemir Christian University.

1. Introduction

The global financial economic crisis has

unveiled significant decreases in the

regulation and supervision of the

international financial system.

The deepening of financial markets by

the use of complex instruments, the

development of financial institutions with

an intensive cross-border activity, and the

higher degree of interconnectivity between

financial institutions were a few of the

elements that led to the global financial

system’s increased vulnerability to risks.

Changes operated in the European Union

(EU) financial regulatory framework are

aimed to ensure the transition towards a

more resilient financial system, capable of

weathering any future financial crisis, as

well as to strike a balance between

economic growth and the stability of the

financial system.

2. Characteristics of the economic and

financial crises

The economic crises reflect the

difficulties of the economic activity, that is

a slow decrease and stagnation as a serious

fracture of the macroeconomic equilibrium

especially of the equilibrium between

production and consumption between

demand and supply, between the extent to

which the production factors are used and

the level of employment, between the level

of prices and the purchase power of the

citizens etc.