Political gridlock, violations of European law and inconsistent political communication have turned the euro crisis … into a crisis of confidence in public policy. To re-establish trust in the system, Europe needs a comprehensive approach … institutions governing the euro area, the solution of the European confi dence crisis is crucial to the fate of the common currency. …

After the global financial crisis, some governments in the EU experienced serious debt financing problems, while others … the EU countries before and after the outbreak of the crisis. Fiscal reaction functions of the primary balance are … estimated for different groups of EU countries using quarterly data for the pre-crisis period 2001-2008 and for the post-crisis …

imbalances ; exchange rate adjustment ; credit mechanisms ; European debt crisis …