Transformations  in
Business & Economics

A New Junction Point in the EU Development? A Focus on the Romania’s Situation
Gabriela Dragan, Gabriela Carmen Pascariu

ABSTRACT. The high degree of economic and financial integration already achieved in the EU through the monetary union and internal market has required specific actions to ensure a better coordination of economic policies. The current economic crisis is testing the EU ability to find best exit and recovery solutions not only for the euro-area but for the non-euro member area, as well. The risks not finding the appropriate interventions are rather high since she effects of the crisis on the most vulnerable part of the EU – the Eastern periphery especially - might weaken the whole European integration process. A large number of instruments have been available for EU policy makers to address financial crisis, from financial and macroeconomic policies to structural reforms.

The aim of this article is to focus on the EU capability to deal with crisis consequences, the analysis focusing particularly on the non-euro member states’ situation. With regard to some of the recently proposed economic policy measures (like the introduction of the “European semester”, a stricter Stability and Growth Pact and a better macroeconomic surveillance system, a new European Stability Mechanism and, very recently, a new EU’ Competitiveness Pact), the differentiation between euro and non-euro zone countries is likely to become an issue which raises the question, to what extent the European Union with two speeds, one for the “core Europe” and one for the non-euro zone countries, could resist.

KEYWORDS: European economy, economic and financial crisis, public debts, public deficits, Romania.

JEL classification: F02, F36, F59, P2.