The recent economic crisis is considered as a biggest world financial crisis that plunged the real economy into recession and destabilised the entire financial system around the globe. Several European members are deeply affected by the extension of this current crisis especially euro zone. The euro zone financial turbulence and the political crisis have revealed weaknesses in European integration and raised the question against euro as single currency and sovereignty of the national interest. The consequence of this has been widespread irritation between member states and never ending political and economic crisis. On going political dialogs between strong and weak economic player in side the European Union came over as a dominant player for the idea of European integration, which is noticed as one stronger step towards federal system of European Union, beyond the national interest.In fact, the recent crisis has tested the European Union to the most by examining their decision-making institutions. By analysing the period from 2008 to February 2012 shows that the European Union is a political edifice that develops as crises occur, and explain the complexity of integration by specifying the indicators of good governance of transparency, legitimacy, accountability, efficiency, and to achieve them in a heterogeneous group of 27 countries that are only slowly developing a common European identity and raising question of continuation of European Union.
Keywords: European Union, crisis, euro, common norms, integration
Full Paper: Economic Crisis and State Sovereignty – European Union