New Implications Of The Economic Governance Process Across The European Union Member States

One important debate around the economics forum nowadays is the issue concerning the key factors that enable countries to achieve high rates of economic growth and development. The existing theory on the economic growth process identified along time a series of elements that make some countries to grow faster than the others, ranging from technological progress to human capital, natural resources or the degree of openness of the economies. The recent events across the European Union Member States, including the Brexit, the problem regarding immigration and terrorism, moved the centre of interest from the financial crisis to the risks associated to the instabilities from the political sector. Nowadays the main risks over the stability of the European Union is considered to be the political risk followed by the economical one. The correct management of this category of risks belongs to the institutions of the European Union, that are responsible for making decisions that target the interest of all the Member States. A decisive component in this process is the economic governance. This process was a quasi-neglected one until two or three decades ago, when it was confirmed that it plays a very important role in the analysis and modeling of economic growth and convergence processes. The main objective of this article is to detail the meaning and implications of the concept of economic governance and at the same time to highlight the channels of transmission between this process and economic output.