Resumen de Economic development problems and crisis in the European Union, 2005-2015

María del Carmen Guisán Seijas, Pilar Expósito Díaz

• We analyze economic development of 42 European and Eurasian Countries for the period 2005-2015, and show the negative consequences of the EU austerity policies on the European Union as whole and in many countries. The study includes 25 European Union countries: 14, out of EU15 countries with accession before 1996, and 11 with accession afterwards, and it compares the annual increase of those country for the periods 1990-2005 and 2005-2015. The consequences of austerity policies where negative for 13 out of 14 EU15 countries (all but Germany), with increases lower in the second period, and in particular for 4 countries with decrease of real production per head in the period 2005-2015: France, Italy, Spain and Greece. The austerity policies of the European Union, have failed to solve the economic problems, because they did not have into account important measures to get sustainable development. The persistence of these policies is damaging the trust of many European citizens on the EU bureaucracies, as showed in the Euro-Barometer, and it is provoking a lot of social unrest and political instability in many countries. Here we present a review of the literature on this important question and an analysis of the main policies that should be developed by the European Union in order to favour sustainable development and social inclusion in all its member countries. The analysis has into account a wide macro-econometric view from demand and supply, having into account not only the role of investment and demand but also the role of industry and foreign trade