 The Impact of the Global Economic Crisis in the Old and New Cohesion Member States of the European UnionBeáta Farkas Public Finance Quarterly, 2012, vol. 57, issue 1, 53-70 Abstract: Within the European Union cohesion member states were hit hardest by the global economic crisis. In this region, devel-opment relied more heavily on the influx of foreign capital compared to other emerging regions, which, in turn, made these coun-tries more vulnerable to the effects of the crisis. The extent of the downturn depended on the imbalances accumulated before the crisis. As a result, the growth outlooks of Poland, Slovakia, and the Czech Republic have deteriorated least, whereas Hungary fell behind the Visegrád countries. Ireland and the new cohesion member states facing a difficult situation reacted more flexibly to the crisis than the Mediterranean countries. The cohesion member states suffered more significant losses in areas key to growth poten-tial (investments, education, innovation), and were forced to employ harsher austerity measures in these areas compared to the Northern/Western central states, which supports econometric analyses forecasting a slow-down of convergence. This also makes it necessary to redefine the concept of integration. Keywords: European integration; cohesion countries; convergence (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pfq:journl:v:57:y:2012:i:1:p:53-70 Access Statistics for this article More articles in Public Finance Quarterly from Corvinus University of Budapest Contact information at EDIRC. |
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