The global financial crisis and its macroeconomic impact on the European Union

The financial crisis started in the United States spread over to Europe and, for the first time after 1945, it developed to an overall macroeconomic crisis in the entire developed world. Social and ideological consequences of the deep recession are expected to follow. The article focuses on the impacts of the crisis on the European Union, with special regard to the economic policy answers on nation-state and community levels. It is stressed that the unprecedented challenges represent both a high risk of stopping or fragmenting the integration process and, at the same time, a unique chance to deepen and upgrade the European integration, as a key player of the changing global economic (as well as political and institutional) system. The answers to be given in 2009 will fundamentally shape the future of Europe in general, and that of the European Union, in particular.