Topic > Essay on the EU crisis - 1034

It all started in the summer of 2007 when a crisis hit the United States and, due to the huge government interventions carried out, the United States and most European countries went into recession. The EU crisis was also caused by the large debts incurred especially in Spain and Italy, before 2008. Private sectors (businesses and mortgage borrowers) asking for loans were the main reason for this crisis. There was a decrease in interest rates in southern European countries when they joined the euro and this led to countries going into huge debt. This has had negative effects on financial markets, a slowdown in economic growth in industrialized countries and an impact on European labor markets. After the Second World War, unemployment rates in Europe were already low, and with the crisis the percentage of unemployment rates increased in the following years. This was all due to different issues and events they were facing such as; the two oil price shocks, the decrease in production growth, the disinflationary policy of many Central Banks, and so on. This recession resulted in a very high unemployment rate and the increase in unemployment during that period was achieved using some internal measures (such as flexible working hours, temporary closures, etc.) but the unemployment was not equally distributed among different groups of people (the biggest differences occurred due to gender, education, age, etc.) but in the end these measures only delayed the process of significant job unemployment, they did not help the situation to return to normal It was before the crisis. The workforce of a population is made up of employed and unemployed people. Inter......middle of paper......faces many problems, the European job market was also affected by this crisis, and there were many other problems that were faced during this difficult period . The EU's plans for the future are to minimize job losses and prevent unemployment, improve job creation and recover the economy fully and stably. To make this happen and to improve and develop the flexibility of the labor market and to increase labor supply, they made some cuts in income taxes, improved access to non-standard forms of work, reoriented policies labor market activities and similar activities like these have been carried out. But even though the EU crisis affected the European labor market and created many problems and difficulties with unemployment, in the last two years they managed to increase the unemployment rate by 2%.