Publication

This paper examines the causes of the European financial crisis and its effects on Europe’s political and democratic development. According to the author, the causes of the financial crisis trace back to the democratic decision-making process, the inability to undertake reforms and adjustment measures, and the tendency to adopt incomplete solutions in European democratic countries. Comparing Europe and the United States, the author also underlines the role of short-term measures and the Central Bank in causing the financial crisis and concludes with some recommendations for the future.