EUROPEAN INSTRUMENTS FOR COMBATING THE ECONOMIC CRISIS. TREATY ON STABILITY, COORDINATION AND GOVERNANCE IN THE ECONOMIC AND MONETARY UNION

In the middle of the economic crisis, the European Union considered that in order to prevent slippage type like Greece is appropriate to involve more in national economic and budgetary processes. Thus the transfer of powers from the national to the supranational is amplified. Treaty on Stability, Coordination and Governance in Economic and Monetary Union aims to generate a high degree of discipline to the budgetary policies of the member countries of the European Union. It is a new item of small steps adopted by European leaders over the last quarter's towards making Political Union. Immediate implications of this instrument of economic policy in the European Union are obvious: European states will have to implement a series of structural reforms in order to reduce structural component of the deficit below the level specified in the new Treaty. Such measures will certainly target areas where significant structural imbalances persist, of which I mention social state. Of course, it will take several years until the new treaty limits will be respected. The purpose of this Paper is to analyze the potential impact of the Treaty in the European economic area.