Premium
Will the EU survive an Eastern European crisis?
Author(s) -
Tokic Damir
Publication year - 2009
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20523
Subject(s) - european union , financial crisis , european debt crisis , gross domestic product , international trade , business , economics , international economics , financial system , economic policy , european integration , keynesian economics , economic growth
Abstract Austria has lent 70 percent of its gross domestic product to Eastern European countries. Even a modest default rate on these loans will cause the collapse of the Austrian financial system. Other Western European banks also have significant exposure to Eastern Europe, which is heavily indebted and likely to default. Will the European Union be able to survive this crisis? © 2009 Wiley Periodicals, Inc.