The European economy was hit by a confidence shock in 2009 when the Greek government of Papandreou discovered the true amount of public deficit. The subsequent loss of trust in European fiscal governance reduced financial markets' willingness to lend to indebted governments. The European Union...

The means by which macroeconomic goals such as growth, price stability, and full employment are managed have gone through major changes in the European Union. The introduction of a single currency and the Code of Conduct on harmful tax competition are two prime examples of this transformation....