Eu’s political actions for the enhancement of macroeconomic stability in confrontation with great economic recession

Abstract

After the great economic recession, started in the end of 2007, provokes the complicated question for researches and experts: do the EU’s legal authorities [e. g., European Commission (EC), European Central Bank] have taken appropriate political actions in order to make more efficient fight with banks collapses, growing the governmental debt of some EU member states, rising unemployment rate and other undesirable downturns in the systems of economies. The article tries to answer to mentioned question. For the first time, it were systemised and explained various EC’s initiatives towards supervision of EU’s economic stability. Comprehensive analysis of first adequate actions of Lithuania’s Government and other World countries as the reaction to the great economic recession in the period of 2007–2009 was systemised. The chapter highlights several important results: what actions were undertaken by EU authorities in order to reduce the painful consequences of later economic recession? Were they adequate and timely? How to maintain stability of state’s economy by implementing political actions of EC? The latter economic recession showed that fiscal policies—both micro level (related with interest payments) and macro level (related with amount of resources available to deal with financial crises)—have an influence on the vulnerability of economy. However, still it is unclear what exact adaptations in the economy are needed.