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Capitalist flow in the EU

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  1. The impact on growth in the euro area
    1. An economic slowdown
    2. Employment
  2. Possible solutions
    1. A decline in interest rates
    2. A redefinition of the role of the ECB

Many articles on the Treaty of European Union address the question of capital flow. Each individual must draw his attention to Article 63 of the new Treaty that sets down the policies and norms for the proper functioning of the European Union. The free movement of capital is necessary for the efficient functioning of the EU.

The EU was established very recently and its member States proved hostile to any endeavor to make them give up control of their domestic finances. It foreshadowed the introduction of the single currency: the euro. The Treaty aims at harmonizing economic policies and reducing the deficit of the states. It led to the stagnation of some states. What evolution facilitated the freedom of circulation of capital?

Tags: European Union Treaty, Adoption of the Euro, Capital Flow in Europe

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