European Union and Fiscal Crisis: Process and Perspective

Though European Union is established in order to promote cooperation and unity among European countries, the present fiscal crisis and unfavorable situation of some member states is threatening basic goals of the union. The present crisis is the most critical affair that the European integration process has been facing since outset. This research is to study different faces of fiscal crisis and its future perspective in European Union and to analyze possible consequences of the crisis on future of European integration, and also on its common foreign policy. Regarding the fiscal crisis, the question is that what may happen to European integration in the future? Descriptive-analytic method and deduction are utilized in order to achieve the goals of the research, and the methodology of the research is inferential. The findings of this research show that the main cause of the fiscal crisis is amalgamation of three factors including economic globalization, spread of U.S fiscal crisis into European union and lack of fiscal discipline among uneven and asymmetric economies of member states. Therefore, consequences of the fiscal problem not only affect institutions and fiscal market but also political and social environment of whole European Union.