Risk factors of the current crisis management of the euro area and their impact on the economic development of the European Union

Abstract

The article deals with the contemporary development of the European Monetary Union (euro area) with a focus on its key problems and ways of their solution. Its aim is to assess the meaningfulness of the 'Eurozone' project, including the gradual introduction of the single European currency into other countries and the consequences it causes. The first part of the paper describes the emergence and initial development of the European Union and the adoption of the European common currency, including the initial consequences that caused it. Subsequently, the methods and effectiveness of macroeconomic regulation of the European Central Bank in the following stages of crisis and so-called “post-crisis” development are analyzed, focusing on specifically used ECB monetary policy instruments and achieved results. And then the current economic situation in which the euro area and the European Union are currently being situated is analyzed. The penultimate part then evaluates the primary and secondary impacts of the use of the single European currency on economic development in the euro area, as well as the impacts of the current monetary management method of the European Central Bank. The very conclusion of the paper deals with the evaluation of benefits, respectively the results of the use of the single European currency, both in the euro area and throughout the European Union.