According to the European Commission, Europe responded to the financial crisis by committing 13 percent of EU’s annual GDP between 2008 and 2011 to banks. On the same note, it also launched a recovery program in all European countries to safeguard jobs and protect economic investments. This played an instrumental role in avoiding bank runs and saving European investment.
As a result, the euro maintained its value, thus successfully shielding the eurozone from the devastating effects of financial crisis. The position of European countries includes a true commitment to strengthening financial regulation and supervision, with special emphasis on improving the monitoring of credit rating agencies and establishing regulatory standards to end tax evasion and banking secrecy. While most of these measures are welcome, they do not provide a reflection of a commitment to transform the global financial industry.
An effective and global response to economic crisis is not to preserve only large economies and powerful states but all countries, including developing ones. Economic crisis has also served as a lesson to European countries. Central banks and governments across Europe are now well aware of the need to avoid mistakes that could lead to another global crisis. For instance, bank runs are now avoidable, monetary policies have been eased and European countries have not resorted to protectionism.