The Impact of Financial and Economic Crisis on EU-27 Member States' Balance of Payments

The object of the present article is to analyze the impact of 2008 financial and economic crisis on the evolution of balance of payment of EU-27 member states. Specifically, the analyzed period is between the years 2006-2011. The article is structured in the following parts: (1) the analysis of the evolution of the current account and capital account balance in the EU27 with non-EU states, (2) the identification of the main factors of disparities and asymmetries between the Euro area member states concerning current account balance and international investment position; (3) the role of TARGET2 system in financing of current account deficits of the peripheral countries of Euro area, and capital flight from these states to other Euro area countries perceived as less risky by investors.