WHAT IS THE KEY ECONOMIC PROBLEM OF THE EU?

Abstract

In a search for the main economic problem in the European Union the article nominates the three of them – (I) economic stagnation, (II) model of the state and economy and (III) debt crisis. It is stated that the main economic troubles in the EU are caused by the model of state and economy (II). The state is too expensive, with huge redistribution and regulation, discouraging investment and work effort and making the products from the Union more expensive than those by its rivals. By solving the problem of the model (II), economy would make faster advance (I) and that would make easier to service the debts (III). By solving the problem (II), all three problems would be solved. Otherwise, the improvement in (I) and (III) is not able to solve the problem of the model (II). This shows that the main problem is (II) rather than the other way around.