{ "id": "R40415", "type": "CRS Report", "typeId": "REPORTS", "number": "R40415", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 357184, "date": "2010-03-17", "retrieved": "2016-04-07T01:52:30.389343", "title": "The Financial Crisis: Impact on and Response by The European Union", "summary": "The European Union (EU) and the United States have taken unusual and extraordinary steps to resolve the financial crisis while stimulating domestic demand to stem the economic downturn. These efforts appear to have been successful, although the economic recovery remains tepid. The economic recession and the financial crisis became reinforcing events, causing EU governments to forge policy responses to both crises. In addition, both the United States and the EU have confronted the prospect of growing economic and political instability in Eastern Europe, Greece, and elsewhere over the impact of the economic recession on restive populations. In the long run, the United States and the EU likely will search for a financial regulatory scheme that provides for greater stability while not inadvertently offering advantages to any one country or group. Throughout the crisis, the European Central Bank and other central banks assumed a critical role as the primary institutions with the necessary political and economic clout to respond effectively. Within Europe, national governments, private firms, and international organizations varied their responses to the financial crisis, reflecting differing views over the proper policy course to pursue and the unequal effects of the financial crisis and the economic downturn. Initially, some EU members preferred to address the crisis on a case-by-case basis. As the crisis has ebbed, coordination among European capitals and between Europe and the United States has become more elusive and growing differences threaten the adoption of a coordinated long-term solution to regulatory reform and coordination of financial policies.\nWithin the United States, Congress appropriated funds to help recapitalize financial institutions, and adopted several economic stimulus measures. In addition, Congress has been involved in efforts to reshape institutions and frameworks for international cooperation and coordination in financial markets. European governments also adopted fiscal measures to stimulate their economies and wrestled with failing banks. The financial crisis has demonstrated that financial markets are highly interdependent and that extensive networks link financial markets across national borders, which has pressed EU governments to work together to find a mutually reinforcing solution. Unlike the United States, however, where the federal government can legislate policies that are consistent across all 50 states, the EU process gives each EU member a great deal of discretion to decide how they will regulate and supervise financial markets within their borders. The limits of this system have been tested as the EU and others have searched for a regulatory framework that spans a broad number of national markets. Governments that have expended considerable resources utilizing fiscal and monetary policy tools to stabilize the financial system and to provided a boost to their economies may be required to be increasingly more inventive in providing yet more stimulus to their economies and face political unrest in domestic populations. Attention likely will also focus on those governments that are viewed as not expending economic resources commensurate with the size of their economies to stimulate economic growth.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40415", "sha1": "7340355ffd519bcb8b357cf5776b54b00f63726f", "filename": "files/20100317_R40415_7340355ffd519bcb8b357cf5776b54b00f63726f.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40415", "sha1": "fc156880e7c1a3e8f43a23df987063f08b67ffd5", "filename": "files/20100317_R40415_fc156880e7c1a3e8f43a23df987063f08b67ffd5.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc26139/", "id": "R40415_2009Jun24", "date": "2009-06-24", "retrieved": "2010-07-07T17:39:19", "title": "The Financial Crisis: Impact on and Response by the European Union", "summary": "According to the most recent National Threat Assessment, the global financial crisis and its geopolitical implications pose the primary near-term security concern of the United States. Over the short run, both the EU and the United States are attempting to resolve the financial crisis while stimulating domestic demand to stem the economic downturn. These efforts have born little progress so far as the economic recession and the financial crisis have become reinforcing events, causing EU governments to forge policy responses to both crises. This report discusses this situation in detail and also discusses individual efforts by both the U.S. and EU to combat the effects of the crisis.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20090624_R40415_c8971bf882ab7d996e4adcf824513320f269033a.pdf" }, { "format": "HTML", "filename": "files/20090624_R40415_c8971bf882ab7d996e4adcf824513320f269033a.html" } ], "topics": [ { "source": "LIV", "id": "Finance", "name": "Finance" }, { "source": "LIV", "id": "Financial crises", "name": "Financial crises" }, { "source": "LIV", "id": "Economic policy", "name": "Economic policy" }, { "source": "LIV", "id": "Business cycles", "name": "Business cycles" }, { "source": "LIV", "id": "Foreign policy", "name": "Foreign policy" }, { "source": "LIV", "id": "Foreign economic relations - U.S. - European Union", "name": "Foreign economic relations - U.S. - European Union" }, { "source": "LIV", "id": "Foreign economic relations - European Union - U.S.", "name": "Foreign economic relations - European Union - U.S." }, { "source": "KWD", "id": "European Union", "name": "European Union" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc743433/", "id": "R40415_2009Mar09", "date": "2009-03-09", "retrieved": "2015-10-20T21:35:54", "title": "The Financial Crisis: Impact on and Response by The European Union", "summary": "This report discusses the global financial crisis and resulting geopoligical situation in detail. It also discusses individual efforts by both the U.S. and European Union (EU) to combat the effects of the crisis by attempting to resolve the financial crisis while stimulating domestic demand to stem the economic downturn.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20090309_R40415_8813f2e9c65b67454a1085f504eab14ac4489ea2.pdf" }, { "format": "HTML", "filename": "files/20090309_R40415_8813f2e9c65b67454a1085f504eab14ac4489ea2.html" } ], "topics": [ { "source": "LIV", "id": "Finance", "name": "Finance" }, { "source": "LIV", "id": "Financial crises", "name": "Financial crises" }, { "source": "LIV", "id": "Economic policy", "name": "Economic policy" }, { "source": "LIV", "id": "Business cycles", "name": "Business cycles" }, { "source": "LIV", "id": "Foreign policy", "name": "Foreign policy" }, { "source": "LIV", "id": "Foreign economic relations -- U.S. -- European Union", "name": "Foreign economic relations -- U.S. -- European Union" }, { "source": "LIV", "id": "Foreign economic relations -- European Union -- U.S.", "name": "Foreign economic relations -- European Union -- U.S." } ] } ], "topics": [] }