|DEn haag university |
|Can the European Union Stand the Current Economic Crisis? |
|EU 3.12 |
| |
|David Champenois - 08054088 |
|07/03/2009 |

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Can the European Union Stand the Current Economic Crisis?

Nowadays, we are facing a world financial and economical crisis. We have seen those last months the failure of famous banks what could not have been imagined sooner and also the launching of action plan of a value of more than 50 billion of dollar. But how did we end up like that? It would be interesting to understand the mechanisms of this crisis and what can be done to limit the damages.

Origins of the crisis

Since July 2007, the world economy has been through 4 major steps, 4 successive types of crisis. This part is devoted to the comprehension of this complex phenomenon.

1. The financial crisis

The financial crisis, usually called the subprime mortgage crisis has been the starting point of the all problem.

Normally when you want to take out a loan, the maximum amount that may be loaned is linked with your wage. But to boost the consumption, the American banks have offered a new kind of loan that has been