Journal articles on the topic 'Financial crises – European Union countries – 21st century'

The economies of the 21st century countries operate on the principle of connected vessels. A significant element of changes in economies is the growth of the financial sector. The process of financial sector growth is often referred as financialization. The significant impact of this sector on economic development was shown during the financial crisis of 2008. Financialization is more visible in highly developed countries. Undoubtedly the founding countries of the European Union belong to highly developed countries. It is possible that the financialization is higher in bigger countries like France, Germany, Italy or United Kingdom, which can also have bigger financial sectors. From the other side there is also country, which economy is based on banks. The aim of the article is to indicate the growth of the financial sector in the founding countries of the European Union. To determine the growth of the financial sector, the author used the indicators appearing in the literature of subject. There are indicators relating to functioning of the economy and banking sector. The second method helps to determine in which country financialization is higher. To made the research there was used zero unitarization method. The results of the study allows to determine in which of the subjects the financial sector is at a higher level of development. It is possible, that during researched period there were changes in financializiation of researched countries.

In the 21st century, terrorism has become a global problem and one of the main factor in world politics at all levels. Cyclical economic and financial crises have a detrimental effect on the state of the social sphere in all countries without exception, thereby creating fertile ground for radical sentiments and terrorist intentions. The growth of geopolitical tension in the world over the past decades has also contributed to the expansion of the activity of terrorist groups around the globe. This article through SWOT analysis attempts to study the state of the EU's fight against terrorism. The threat of terrorism and its most severe manifestations also affected the countries of the European Union, which prompted it to develop a specific policy in the fight against terrorism and improve methods for preventing and neutralizing the terrorist threat. When analyzing the development process of anti-terrorist structures and the practice of combating terrorism in the European Union in 2001-2020, one can distinguish undoubted achievements of the anti-terrorist course. The weaknesses and objective shortcomings of this course stem from the complexities in world politics and macroeconomics, as well as from the very nature of the EU as a supranational structure.

After popularity increase of the concept of Corporate Social Responsibility over last century in the USA, with the 21st century the concept comes into the European Union as well, actually into Czech Republic. For the European Union, the concept of social responsibility becomes one of the tool for achieving the most competitive and dynamic knowledge-based economy (Lisbon Strategy, 2000). With the start of the financial and economic crisis, the European Commission sees in the Corporate Social Responsibility a way how to cope with the crisis. Also scientific studies (Ghoul, 2011; Gruz, 2009) indicate the positive influence of Corporate Social Responsibility on financial performance of the company. In the Czech Republic, the implementation of the concept is especially for multinational corporations. For example, Corporate Social Responsibility is very popular in financial sector, which the financial crisis did not damage so perceptible as in other countries of developed economies (Singer, 2009). This article defines on a theoretical level the concept of Corporate Social Responsibility, its development, its present form and the influence on financial performance of the company. Another part of the article focuses on three czech banking subjects (Česká spořitelna, Komerční banka a Československá obchodní banka), which regularly take the leading positions of the official corporate donors chart „TOP Filantrop“. The article explores the evolution of corporate donations and finds the connection between corporate donations and corporate profit and financial and economic crisis.

The article presents the analysis of macroeconomic stability of Poland using the Pentagon of macroeconomic stabilization and the Macroeconomic Imbalance Procedure (MIP) indicators. The results of the analysis showed that in 2007-2014 Poland maintained the status of a macroeconomic stable economy, however, the changes resulting from the impact of the global financial crisis of the beginning of the 21st century were noted as well as the weakening of some values related to the stability of the country in later periods. It is worth remembering that when analyzing all kinds of macroeconomic indicators, one should not approach them with too much optimism. This is due to many factors - including from the delays of the captured variables in the analysis tools used. For some economic phenomena may occur in a rapid manner even in the most stable economy, which means that macroeconomic stability may be difficult to precisely determine.

Recent developments in the European Union revealed significant differences between the Visegrad countries and the remaining members of the EU. The enlargement euphoria of the first decade of the 21st century was replaced by certain enlargement fatigue, manifesting itself not only in concrete governmental policies but also in the public opinion towards the EU. As European integration and globalisation are parallel processes, declining support for European integration must not necessarily be the result of disagreement with specific policies and should be examined in the broader context of globalisation fears and anxieties. The article describes variations in globalisation scepticism between the group of Visegrad countries and the remaining countries of the EU as well as variations within the Visegrad group itself, focusing on the main drivers of economic globalisation – international trade, foreign direct investment, and immigration. The development of public opinion since the financial and economic crisis in 2009 indicates that Visegrad countries should not be treated as a uniform bloc of globalisation sceptics as there are significant differences in opinion between the more pessimistic Czechs and Slovaks and the more optimistic Poles and Hungarians. Their globalisation scepticism also varies across different dimensions of globalisation and is fuelled by different motivations.

The article presents migration as a threat to international security in the 21st century. The first part presents the problem of people migrating to Europe, including third-country nationals. It is shown that uncontrolled mass migration has forced European countries to provide budget, shelter and counselling for migrants. Furthermore, there were many cases when migration met with disapproval of indigenous people and fear of the impossibility of integrating different cultures and customs. European Union has introduced financial tools to support member countries in financing migration-related problems including the Asylum, Migration and Integration Fund; and the Internal Security Fund. The article also mentions the European immigration policy adopted in 1999. The second part of the article refers to negative effects of migration: trafficking in human beings and forced labour. It is shown that they are widely practiced. To eliminate illegal activities, actions, which the author describes, are being taken within Europe. Polish people have also experienced trafficking in human beings and forced labour abroad. Such crimes have been reported within Poland as well. Finally the author states that the security of the European Union is threatened not only by external migrants, but also by citizens who migrate internally.

Abstract At the beginning of the 21st century, the European single currency has been considered a guarantor of prosperity and welfare for the countries that were able to meet the nominal convergence criteria. Starting with Slovenia, a number of five Center and Eastern European Countries joined the Economic and Monetary Union, aiming to achieve the economic prosperity of the Western countries. The concept of economic convergence has been popularized through the economic growth literature during the last century and has become more and more debated with the deepening and expansion of the European Union. The main purpose of this paper has been to evaluate whether there is any hard evidence attesting that Euro adoption accelerated the economic development and created a significant advantage for the New Member States that opted for the single currency, as compared with their peer countries. In this respect, we have studied a panel of New Member States that joined the European Union in 2004 and 2007, comprising both Euro and Non-Euro countries, and we concluded that the single currency do not necessarily guarantee higher growth rates. Moreover, we revealed that the Euro New Member States were more affected by the economic and financial crisis than their Non-Euro peers. We have also shown that there are significant discrepancies between the early adopters of the Euro and the countries that joined the Eurozone after 2004 in terms of convergence and that the differences between the two groups have expanded in the last years. Last and not the least, in order to test our hypotheses, we have compared two sister-countries: Slovakia that joined the Eurozone in 2009 and Czech Republic that has not taken until now the decision to adopt the Euro. In this respect, our results suggest that both countries had good economic performances, and for some periods Czech Republic outperformed Slovakia, mainly in terms of GDP per capita and Foreign Direct Investment. Therefore, we concluded that the single currency has not significantly enhanced the economic performances in the case of the New Member States.

The European Union of Medical Specialties is taking efforts to harmonize Continuous Medical Education (CME) requirements in Europe. However, in an era of financial crisis, some countries may undervalue the long-term public health impact of weak and budget-limited CME national systems. Appreciating the statement of the Greek ancient philosopher Socrates: “If you think that education is expensive, you should consider ignorance”, an assessment of the Greek CME system and its possible areas of improvement is attempted. From a questionnaire-based survey conducted to one hundred Greek practicing physicians, it seems that the vast majority respects the values of CME. However, they do not seem to clearly perceive CME as an obligatory, neither as an outcomes controlled process. They also confess CME access difficulties and geographic and financial discriminations. Overall, the Greek CME system was characterized as a non-satisfactory one and it did not seem to meet the physicians’ specific needs. Reviewing for relevant concerns also in a global context, it appears that institutionally mandating CME, controlling for the quality and the outcomes of it, as well as CME funding issues, they are all concepts where either robust evidence lacks and/or improvements warrant. Taking into consideration the above, a Greek CME system reformation is considered as utmost relevant and the comprehensive establishment of a National CME Authority, dedicated to address the above issues, is also suggested. Key words: accreditation of medical education, continuous medical education, continuous professional development, public health institutions and policies.

Mutuality is the oldest social movement on French soil as the first mutual support groups were founded just before the French Revolution at the end of the 18th century, that is half a century before the first cooperatives and one century before workers’ unions. The tremendous development that the mutuality underwent in the second half of the 20th century in France, especially in the non-life insurance market where it was not a real actor until then, attracted the attention of professionals the world over. It is a reference that is even contemplated in the Islamic World where it could serve as a model for Takaful, and in developing countries where it could be adapted to micro-insurance. Beyond their importance in the French insurance markets, both non-life and life mutuals insurance play an important role in European economy and society, providing social coverage and other types of insurance to a significant proportion of European citizens. Some have questioned whether the liberal inspired European legal environment might threaten the future growth of mutual in the 21st century, or even the existing market shares, for a model that has proven efficient not only in its initial domain healthcare, but also in non-life insurance where it has really bloomed since World War 2. Following a presentation of the historic development of the mutuals in France since the Revolution, this article presents an overview of the specific features and roles of mutual societies in France, mentions relevant French and EU law applicable to mutuals, and considers the performance of mutuals through the financial crisis. The article takes the view that mutuals have the potential to contribute to the inclusive and sustainable growth of the European Union.

In this two-piece study, the author introduces the most important international organizations and institutions fighting against money laundering of our time, through the main chapters of the formation of the international institutional system. The first part is focused on the creation of the international institutional system fighting against money laundering.By the 21st century the phenomenon of money laundering—with the need of the laundering of gradually increasing “dirty” money, mainly from drugs, weapons and human trafficking, prostitution and corruption—has become a worldwide problem. With the increasing organization of international criminal groups—taking advantage of the free movement of money and financial services—are using more and more refined techniques to get more profits with their illegal activities. Money laundering will not leave terrorism untouched—casting a shadow on our everyday life—as particular radical groups use every means necessary to lay their hands on money sources anonymously needed for their existence, as it supplies their destructive actions; and naturally procuring this money the best sources are the money laundered by criminals. Recognising the money laundering and the negative and destructive effects of new crimes on everyday economic, financial and political life based on laundering, the leading countries of the world started international legislation against money laundering and terrorism which laws and codes are strictly regulating the different financial and bank supervision of the nation states. Despite the onsetting difficulties and indecisiveness, it was clear for the European Union that only strong international collaboration—and the unified understanding of measures—is the only power to stop the spread of money laundering.

The paper deals with the formation of a modern style of financial relations between the European Union and post-Soviet states. The author explores the objectives and features of the implementation of two main components of the European financial policy in the post-Soviet space: investment in the development and commercial activities of private capital. The EU financial policy in the post-Soviet states advances in the context of pan-European humanitarian, geopolitical and energy concepts established at the beginning of the 21st century. Despite certain differences that exist in the approaches of the European Union to dialogue with groups of countries within the frameworks of the Eastern Partnership and the EU Strategy for Central Asia, a common line is seen here on investments in promoting the education, European values, legal standards of banking. At the same time, in relations between Europe and the post-Soviet countries there is a tendency towards the adoption of the principles of financial pragmatism and a desire for long-term investment ties. The expanding role of the European banks and investment companies in economic life in the post-Soviet space is in direct connection with the realization of the modernization potential in post-Soviet states.

Abstract The intrinsic links between national security and other types of security also results from the fact that the threats and challenges of the 21st century no longer address the national segment, but also the entire international community, which causes the occurence of security structures at all levels to manage the crises that arise at some point internationally. It is known that in terms of security, states usually adopt a mutual security and defense policy, using human, material, financial and information resources available to everyone in a collective manner. If NATO is a good and eloquent example in this sense, a viable solution against risks and security threats from a regional perspective appeared in the European Union, which has its own policy for security and defense able to integrate national security politicy the of Member States in that of the Union.

Since 2015, the migration crisis continues with varying intensity, and international security crisis as well as debt, institutional, and personnel crises are worsening, not only in the Eurozone. Probably war, economic and climate immigrants will continue to move into the Schengen area, showing how helpless the European Union is. Angela Merkel said there was no upper limit for the number of people admitted to escape political persecution. Germany leaves the Dublin system inconsistently, runs counter to European cohesion and stops differentiating between immigrants and refugees. Migration is shared by the EU Member States. Between “old” and “new” EU countries, scissors are opened. Moreover, in some European regions (France, Belgium, Germany, Sweden, the United Kingdom, Spain, Greece) there are closed communities where majority law is not valid. Our current socio-political and economic existence is based on a traditional understanding of security. However, in the third decade of the 21st century the image of prosperity and security is to be seen from a different perspective than in previous years. Dramatic development has led to the mass migration of African and Asian people and to the division of the European Union, especially regarding the mechanism of redistribution of asylum seekers.

The development of relations between Japan and Europe after the Second World War in the second half of the 20th century and the beginning of the 21st century has become the subject of numerous historic- political and economic studies. The subject in question is of interest for researchers from Japan and Europe as well as to scientific communities from various other countries. Obvious spikes of researchers’ activity occurred in the times of transformation of relations such as the shift to neoliberalism by the end of the 20th century, the formation of the European Union and the recent signing of the Economic Cooperation and Strategic Partnership agreements. Today researches of the matter at hand appear to be highly relevant. Japan and Western Europe have come a long way from trade wars and open standoff at international fora to successful economic cooperation and strategic partnership in relatively short time. Analyzing their experience will be useful for finding solutions to present day international crises. The present article presents the most relevant studies of relations between Japan and Western Europe in the second half of the 20th century and the beginning of the 21st century. The relevant publications are reviewed by the author in chronological order. This way the distinguishing features of researchers’ approaches to the subject in question in different time periods can be demonstrated more distinctly. The problematic-chronological method was used to carry out the research because it allows to trace the correlation between the topics of historical research papers and the stage of development of historical science. Additionally, the author made use of the periodization method.

The purpose of the article is to try to outline whether the EU is still an attractive actor in international relations, which is conceptualised as a specific soft, normative and the same transformative power and the centre of attraction for states located outside this organisation. The credibility of the European Union on international arena was undermined by global changes taking place in the 21st century, including emergence of new non-European powers, and particularly a series of crises (financial, migration, identity) that have affected the EU recently. In the article the following analysis will be made: the basic components consisting of attractiveness of the EU and evolution of its perception on the international arena, and the main challenges that the EU has to cope with in order to become a significant power again. It is assumed that the European Union certainly lost its attractiveness and prestige as a result of recent transformations that affected it within the system, but also due to the dynamics of the international environment.

AbstractBoth the financial crisis of the first decade of the 21st century, as well as the deterioration of trade relations between the European Union and the Russian Federation were events that significantly affected the functioning of the largest listed companies on the food market: on the one hand, aggravating the conditions of economic functioning, on the other hand creating a stimulus to seek new innovative solutions to help companies survive on the market. The aim of the work was to present the impact of crises on the intellectual capital of WIG-Food index companies, which is an indirect measure of innovation. The MV/BV and q-Tobin index were used for the study, as well as selected quantitative methods: multiple regression, Ward’s method and seasonal additive decomposition. The results of the work indicate that the companies are divided into two groups, within which similar trends in shaping intellectual capital are observed. In addition, one of the groups clearly noticed the impact of the financial crisis and the introduction of an embargo on the shaping of intellectual capital.

The turn of the century was full of dynamic and multi-dimensional changes in the global economy. The most spectacular phenomena may include financial crises. They exerted influence not only on the economy, in which they appeared, but as a result of deepening of globalization, spread "infecting" others. The purpose of this article was an attempt to find similarities in the dynamics of changes in production and global demand that characterized the economy of the selected European Union countries. The starting point was to show the dynamics of gross domestic product (GDP) in selected countries and to find similarities between them. In the next section attention was focused on the changes in the two components of aggregate demand: consumption and investment, particularly on their correlation with the rate of change of GDP. For analysis and comparisons the following economies were selected: the economy of the European Union (represented by the euro zone) and the economy of Central and Eastern Europe.

Several serious circumstances led to the writing of this essay: since 2008 the crisis remains, albeit with varying degrees of intensity, the situation in the field of international security, as well as debt and institutional crises, are worsening not only in the eurozone. Probably the organized migratory wave of war, economic and climate migrants continues to move across the permeable borders of the Schengen area, showing how the European Union is fragile and helpless. [Klaus, Weigl, 2015] German Chancellor Angela Merkel said there is no upper limit for the number of people who would be admitted to escape political persecution in their country. Germany leaves the Dublin system inconsistently, runs counter to European cohesion and stops differentiating between the immigrant and the refugee. Migration divides EU Member States into patriarchal and patrimonial and distrust between municipalities. Between „old” and „new” EU countries, scissors are opened. In addition, in some regions of Europe (France, Belgium, Germany, Sweden, the United Kingdom) there are closed communities where the majority law is not valid. Our current socio-political and economic existence is based on a traditional understanding of security. However, the second decade of the 21st century represents a political and military conservative mirror that reflects the image of prosperity and security from a different angle than in previous years. Dramatic developments have led to massive migration of the peoples of the African and Asian continent and to the division of the European Union, especially with regard to the permanent mechanism of redistribution of asylum seekers. Our aim is to contribute to discussion and reflection on topical issues of security environment and security system as a follow-up to the dramatic development that have resulted in the massive migration of people from the African and Asian continent, and in the European Union's break-up, especially in view of the permanent mechanism of redistribution of asylum seekers. We are focused on to what extent the security system of the EU and national states has been threatened and what the threatening factors are. Our aim is to point out that the international security situation has not changed for the better in the second decade of the 21st century. For this purpose, the author uses deductive, analytical, comparative, scientific methods such as exploration, prediction, explanation, and Hanlon's razor.

Received 08.05.2020. Energy has always been of particular importance to the European Union. Meanwhile, up to the beginning of the 21st century, this area had been in exclusive competence of member states, with timid attempts of the European Commission (EC) to receive part of the powers in the energy sphere. The article is devoted to the issues of the EU common external energy policy development that was accompanied by a dichotomy of interests between the member-states, which hardly like the idea of the energy sector communitarisation, and the European Commission, which has been the main driver of supranationalisation of the energy sphere for a long period of time. The author characterizes the main achievements towards the EU common external energy policy, including the law regarding the export of energy to neighboring non-member countries through various organizations, such as the Energy Community, the Eastern Partnership, MEDREG, and launching of the European Energy Union (EEU) in 2015. Special attention is paid to external factors that facilitated the enhancement of the European Commission’s role in the energy sphere. The new era for the EU common external energy policy started in 2015 with the EEU and energy security as one of its priority, partly due to the gas crises and political tension between the European Union and Russia. It is noted that the EEU has facilitated the adoption of some EC’s legal proposals that could not be adopted for a long time, such as the mechanism of consultations on new intergovernmental contracts. In general, the creation of the Energy Union should certainly be seen as strengthening the supranational energy competences of the European Commission. It is concluded that the European Commission has made a significant progress towards a common external energy policy, strongly supported by the public opinion that the European Union should speak one voice with third countries. Despite the lack of legally supported competencies in energy for the EC, it gained authority in different directions of the EU energy policy development. Under these circumstances, the common energy market that has led to energy interdependent of the member states, forces them to cooperate at a supranational level. The author argues that third countries should clearly understand the dynamic and processes of communitarisation of the energy sphere and adopt their cooperation with the European Union based on this knowledge.

Global partnerships are essential in order to maintain European competitiveness. People tend to think of Small and Medium Enterprises (SMEs) on a global scale, however we should always consider the following questions: Is this the right way? Are we aware of the current situation of SMEs in the world? The aim of the study is to demonstrate the characteristics and the roles of SMEs on national, on European and on global scales, based on secondary data collection in 21 countries, including Arab, Latin America, Asia and the European Union. Based on the differences and identities, the definitions of the various practices regarding sizing policies of SMEs and delimitations in the European Union and Hungary have been summarized, highlighting the “Made in Germany” model as a characteristic difference. In addition, the different data for the countries in a table by regions will also be summarizes. A micro-enterprise typically has less than 10 employees, but distinguishes between self-employment, family, craft and “existential work”. The diversity of size delimitation and the intention to unify are the result of globalization. In the age of Info Communication Technology (ICT) companies have a legitimate need to connect to the global supply chain, therefore gaining know¬ledge of their potential partners. The goal is to see how SMEs can be compared on a global scale, outside the national and European Union frameworks. White looking for a global definition and size limitation of SMEs, I arrived to the global International Financial Reporting Standards (IFRS), more precisely to “IFRS for SMEs”, as a potentially usable benchmark for SMEs in the 21st century.

This article provides an overview of financial situation in the Kingdom of Poland and the Grand Duchy of Lithuania at the end of the Middle Ages and beginning of the early modern era when both states entered the period of military revolution. Military conflicts engaging the Kingdom and the Duchy in the 15th and especially in the 16th century were a catalyst for institutional and treasury reforms affecting crown/ducal domains and fiscal systems in both states. The reforms were aimed primarily at increasing the royal and ducal revenues, but in the long run they were conducive to political changes, the most important of which was the parliamentary union in 1569 and establishment of the Polish-Lithuanian Commonwealth. Although revenues increased and foreign policies of Jagiellonian states proved successful, their treasury systems were never fully modernized. Fixed taxes played a minimal role and allowed the state apparatuses to function relatively efficiently only during periods of peace. The crises, in turn, showed that the Jagiellons’ credit capacity was very limited. Compared to the most developed European countries, the revenue and financial capacity of the Kingdom of Poland, and even more so of the Grand Duchy of Lithuania, can be considered very modest.

The article analyzes the prerequisites, factors and consequences of immigration to the European Union from countries with a predominantly Muslim population. The main typological characteristics of the recipient countries of migrants from predominantly Muslim countries are highlighted. The problems studied in this article attract the attention of a wide range of specialists due to its relevance and at the same time due to the lack of any adequate answers to the modern challenges faced by the de facto multicultural societies of developed industrial countries. The results of consideration of the rights and freedoms of migrants in various EU countries are also important in scientific and practical terms. Special attention is paid to the analysis of the situation in Germany, as the most attractive country for migrants. In the context of the ongoing changes in the ethnodemographic structure of the population, the forecast of the number and gender and age structure of the Muslim population in Germany by 2050 is given. This forecast suggests that the population of Muslim origin in Germany will increase from 4.3 million in 2014 to at least 5.8 million by 2050. The increase will be achieved mainly due to a higher fertility rate than that of the Germans. According to the theory of E. Lee, the authors distinguish two groups of factors, "pushing factors" and "attraction factors", which contribute to the immigration of Muslims to more economically developed countries. The push factors in the countries of origin of migrants are mainly related to the unstable political situation, economic crises, and high unemployment, especially among the young population. Attracting factors are mainly related to the ability to receive certain economic preferences in the country of reception, to get educated, to have a stable income and medical care. Along with certain benefits, expressed in an increase in the share of the working-age population, Muslim migration also carries certain risks for EU countries: socio-cultural, religious, criminal, economic, political and geopolitical factors that can significantly affect the balance of political forces in the EU countries. The problems that arose with the adaptation and integration of Muslim migrants as a result of the largest migration crisis in the twenty-first century showed that the host country, in this case, the member States of the European Union, found themselves in a paradoxical situation. On the one hand, resolutions were prepared and adopted at the European level, and a set of measures was developed to accept migrants and provide them with financial and social assistance, which was expected to facilitate the process of adaptation and further lay the foundation for the assimilation of young Muslims. It was assumed that these steps will help, to some extent, to spread democratic values and principles for immigrants. On the other hand, in reality, the situation turned out to be much more complex and ambiguous, a number of EU States actually refused to accept migrants on their territories. The countries of the Visegrad group can be cited as an example. The split within the EU on migration issues calls the very existence of the European Union into question. This paper uses data from Eurostat, the International organization for migration, the German statistical office, the European Commission, the European Statistical Office, and a number of other reputable statistical agencies as input data. The material presented in the article does not contain information (information) related to state secrets of the countries of the European Union and the Russian Federation.

Introduction. Following the collapse, or rather self-liquidation, of the Soviet Union-USSR world events began to develop at a kaleidoscopic speed. Europe, Russia and the United States ceased to be central actors in global politics. Huge civilization countries such as China, India and the African continent broke into global politics with ever-increasing power. The united bloc of Islamic countries began to make aggressive claims to the entire world community, and especially to the countries of Christian civilization. And the most important and unexpected thing is that the peoples, nations, communities everywhere began to return to their civilizational, religious and spiritual roots.Materials and methods. Various methods such as comparative law, systemic, logical analysis and other methods were used in writing this article.The results of the study. The attempt to globalize the world by the socio-political criterion “capitalism socialism” failed. The world community, or rather its political, economic and intellectual elite, was given a clear message: ideologies of all kinds communism, fascism, nationalism, socialism eventually undergo transformation, split into sub streams and practically disappear, but the world religions and civilizations remain.Discussion and conclusion. The world globalized spontaneously and naturally, with financial, economic, political and technological dimensions playing the major role. At the same time globalization laid the foundation of new contradictions among countries that enjoy different social, economic levels of development and belong to various civilizations. Moreover, the interests of civilizations living in different time dimensions began to clash, like Islam that lives in 1441 and other countries that have been living in the 21st century for the second decade. The ideology of multiculturalism both in Western Europe and in the USA turned out to be unrealizable in practice, just like the communist ideology that has sunk into oblivion.

Abstract The present paper has as main objective to examine the literature and show the literature review, debates and discussions related to migration and implication of economic development. Media and academic circles are strongly attracted by the topic of migration and its consequences. Aspects brought into attention, from migration and economic development point of view are: climate change, social, economic, political and legislative. The reality is pushing us to research this phenomenon because migration effects are already visible and important for European communities, both for origin and destination countries. It comes questions that point to the core of economic, social, politic and environmental developments of the 21st century and these are referring to environmental and climate justice, as well as existing and growing of the relationships between the involved parties. This paper presents also the literature review analysis of different framings, points of view and lines of argument, and highlighting debates about securitization of climate change, depending on economic and connections to development studies and adaptation research and their influence on migration decision. Migration decision dependents on many factors, such as: level of life, education, employment opportunities, gender and age, familial needs and financial possibilities, but climate change, too. Also, the present paper will point out scientific papers that address the new challenges influencing labour migration inside European Union such as: COVID-19 pandemic, environmental changes, besides social inequalities and regional conflicts which are now at the borders of the European space.

The European Union’s policy on environmental protection and energy security is not only a set of regulations and bans. At the same time, it introduces new opportunities for economic development, it enhances ecological safety and contributes to public health protection by limiting greenhouse gas (GHG) emissions. This policy contributes to the development of renewable energy sources (RES) and those take an essential part in limiting consumption of basic energy sources and fossil fuels that are responsible for the current state and further deterioration of our environment. Environmental and energy education of our society has a significant impact on further development of renewable energy sources. It presents real dangers but also values derived from the development of green energy with the support of the state. It will bring a tangible improvement in the society’s quality of life. <br><b>Aim:</b> The main purpose of the article is to attempt to determine the development of the renewable energy sector in the EU. The regulations, EU directives, laws and the current role of the state in the development of the renewable energy market were analyzed. <br><b>Materials and Methods:</b> The source of the data was the extensive literature on the subject and Eurostat. This work used tabular, graphic and descriptive methods. <br><b>Results:</b> Analysis show that energy safety and environmental protection are one of the greatest challenges of the 21st century. With the rapid depletion of conventional energy sourcesand the continued growing demand for energy, on which the growth of GDP depends globally, causes accelerated degradation of the environment, and with it , greenhouse gas (GHG) emissions. As far as energy safety and environmental protection is concerned, the policy of the European Union , through its actions,strives towards development of the renewable energy market . This in turn prevents the depletion of resources and environmental pollution. <br><b>Conclusions:</b> The current EU situation, including countries like Poland, shows that the development of renewable energy is one of the most pressing issues in modern management, where renewable energy plays a key role in protecting the environment, public health and economic growth. It also prevents resource depletion, environmental pollution and reduces greenhouse gas emissions. It sometimes occurs with the opposition of the private sector and its citizens. To a large extent it is dependent on the availability of financial support from the state.

Relevance. At the beginning of the second decade of the XXI century. economic relations between the United States and the European Union continue to largely determine the development trends of the global economy and the world financial system. The stable dynamics of the transatlantic flows of goods, services and capital reflects the traditional proximity of the models of economic development of the United States and Western Europe, the stability of the existing ties, and the high effective demand of both regions for modern goods and services. The purpose is to carry out a comparative analysis of the macroeconomic indicators of the development of the EU countries and the USA. Objectives: consider the dynamics of the main macroeconomic indicators of the EU and the US from 2015 to 2020; to study and visualize the dynamics of GDP growth, GDP in PPP per capita, inflation in the EU member states for 2016–2020; investigate the dynamics of the total US government debt for 2015-2020. Methods. The method of statistical analysis of data from official government websites (European Parliament) and world agencies - Organization for Economic Cooperation and Development (OECD), Global-finances. The method of comparative analysis was used to compare real GDP, nominal GDP, GDP per capita, dynamics of changes in GDP EU countries and the USA in relation to previous years. Results. If we compare the development of the EU and the United States in terms of the main macroeconomic indicators, we can conclude that the countries have experienced periods of recession and stagnation in economic development to the same extent, including those associated with a lockdown and economic crises against the backdrop of a pandemic. However, in 2020, the countries showed a positive trend towards a reduction in negative GDP, including GDP in PPP per capita. The situation is more complicated in the United States, in terms of the size of the national debt. Conclusions. In modern conditions, the United States and the EU are still not only the main economic partners, but also the main competitors at the global level. The United States plays a leading role in international economic relations, but the United States has the largest trade deficit with China and the EU countries, therefore, in recent years, the idea of creating a free trade zone between the United States and the EU has been most actively supported (among business structures).

Social innovations are activities aiming at implementation of social objectives, including mainly the improvement of life of individuals and social groups, together with public policy and management objectives. The essay indicates and discusses the most important contemporary problems, solving of which requires social innovations. Social innovations precondition the progress of civilisation. The world needs not only new technologies, but also new solutions of social and institutional nature that would be conducive to achieving social goals. Social innovations are experimental social actions of organisational and institutional nature that aim at improving the quality of life of individuals, communities, nations, companies, circles, or social groups. Their experimental nature stems from the fact of introducing unique and one-time solutions on a large scale, the end results of which are often difficult to be fully predicted. For example, it was difficult to believe that opening new labour markets for foreigners in the countries of the European Union, which can be treated as a social innovation aiming at development of the international labour market, will result in the rapid development of the low-cost airlines, the offer of which will be available to a larger group of recipients. In other words, social innovations differ from economic innovations, as they are not about implementation of new types of production or gaining new markets, but about satisfying new needs, which are not provided by the market. Therefore, the most important distinction consists in that social innovations are concerned with improving the well-being of individuals and communities by additional employment, or increased consumption, as well as participation in solving the problems of individuals and social groups [CSTP, 2011]. In general, social innovations are activities aiming at implementation of social objectives, including mainly the improvement of life of individuals and social groups together with the objectives of public policy and management [Kowalczyk, Sobiecki, 2017]. Their implementation requires global, national, and individual actions. This requires joint operations, both at the scale of the entire globe, as well as in particular interest groups. Why are social innovations a key point for the progress of civilisation? This is the effect of the clear domination of economic aspects and discrimination of social aspects of this progress. Until the 19th century, the economy was a part of a social structure. As described by K. Polanyi, it was submerged in social relations [Polanyi, 2010, p. 56]. In traditional societies, the economic system was in fact derived from the organisation of the society itself. The economy, consisting of small and dispersed craft businesses, was a part of the social, family, and neighbourhood structure. In the 20th century the situation reversed – the economy started to be the force shaping social structures, positions of individual groups, areas of wealth and poverty. The economy and the market mechanism have become independent from the world of politics and society. Today, the corporations control our lives. They decide what we eat, what we watch, what we wear, where we work and what we do [Bakan, 2006, p. 13]. The corporations started this spectacular “march to rule the world” in the late 19th century. After about a hundred years, at the end of the 20th century, the state under the pressure of corporations and globalisation, started a gradual, but systematic withdrawal from the economy, market and many other functions traditionally belonging to it. As a result, at the end of the last century, a corporation has become a dominant institution in the world. A characteristic feature of this condition is that it gives a complete priority to the interests of corporations. They make decisions of often adverse consequences for the entire social groups, regions, or local communities. They lead to social tensions, political breakdowns, and most often to repeated market turbulences. Thus, a substantial minority (corporations) obtain inconceivable benefits at the expense of the vast majority, that is broad professional and social groups. The lack of relative balance between the economy and society is a barrier to the progress of civilisation. A growing global concern is the problem of migration. The present crisis, left unresolved, in the long term will return multiplied. Today, there are about 500 million people living in Europe, 1.5 billion in Africa and the Middle East, but in 2100, the population of Europe will be about 400 million and of the Middle East and Africa approximately 4.5 billion. Solving this problem, mainly through social and political innovations, can take place only by a joint operation of highly developed and developing countries. Is it an easy task? It’s very difficult. Unfortunately, today, the world is going in the opposite direction. Instead of pursuing the community, empathic thinking, it aims towards nationalism and chauvinism. An example might be a part of the inaugural address of President Donald Trump, who said that the right of all nations is to put their own interests first. Of course, the United States of America will think about their own interests. As we go in the opposite direction, those who deal with global issues say – nothing will change, unless there is some great crisis, a major disaster that would cause that the great of this world will come to senses. J.E. Stiglitz [2004], contrary to the current thinking and practice, believes that a different and better world is possible. Globalisation contains the potential of countless benefits from which people both in developing and highly developed countries can benefit. But the practice so far proves that still it is not grown up enough to use its potential in a fair manner. What is needed are new solutions, most of all social and political innovations (political, because they involve a violation of the previous arrangement of interests). Failure to search for breakthrough innovations of social and political nature that would meet the modern challenges, can lead the world to a disaster. Social innovation, and not economic, because the contemporary civilisation problems have their roots in this dimension. A global problem, solution of which requires innovations of social and political nature, is the disruption of the balance between work and capital. In 2010, 400 richest people had assets such as the half of the poorer population of the world. In 2016, such part was in the possession of only 8 people. This shows the dramatic collapse of the balance between work and capital. The world cannot develop creating the technological progress while increasing unjustified inequalities, which inevitably lead to an outbreak of civil disturbances. This outbreak can have various organisation forms. In the days of the Internet and social media, it is easier to communicate with people. Therefore, paradoxically, some modern technologies create the conditions facilitating social protests. There is one more important and dangerous effect of implementing technological innovations without simultaneous creation and implementation of social innovations limiting the sky-rocketing increase of economic (followed by social) diversification. Sooner or later, technological progress will become so widespread that, due to the relatively low prices, it will make it possible for the weapons of mass destruction, especially biological and chemical weapons, to reach small terrorist groups. Then, a total, individualized war of global reach can develop. The individualisation of war will follow, as described by the famous German sociologist Ulrich Beck. To avoid this, it is worth looking at the achievements of the Polish scientist Michał Kalecki, who 75 years ago argued that capitalism alone is not able to develop. It is because it aggressively seeks profit growth, but cannot turn profit into some profitable investments. Therefore, when uncertainty grows, capitalism cannot develop itself, and it must be accompanied by external factors, named by Kalecki – external development factors. These factors include state expenses, finances and, in accordance with the nomenclature of Kalecki – epochal innovations. And what are the current possibilities of activation of the external factors? In short – modest. The countries are indebted, and the basis for the development in the last 20 years were loans, which contributed to the growth of debt of economic entities. What, then, should we do? It is necessary to look for cheaper solutions, but such that are effective, that is breakthrough innovations. These undoubtedly include social and political innovations. Contemporary social innovation is not about investing big money and expensive resources in production, e.g. of a very expensive vaccine, which would be available for a small group of recipients. Today’s social innovation should stimulate the use of lower amounts of resources to produce more products available to larger groups of recipients. The progress of civilisation happens only as a result of a sustainable development in economic, social, and now also ecological terms. Economic (business) innovations, which help accelerate the growth rate of production and services, contribute to economic development. Profits of corporations increase and, at the same time, the economic objectives of the corporations are realised. But are the objectives of the society as a whole and its members individually realised equally, in parallel? In the chain of social reproduction there are four repeated phases: production – distribution – exchange – consumption. The key point from the social point of view is the phase of distribution. But what are the rules of distribution, how much and who gets from this “cake” produced in the social process of production? In the today’s increasingly global economy, the most important mechanism of distribution is the market mechanism. However, in the long run, this mechanism leads to growing income and welfare disparities of various social groups. Although, the income and welfare diversity in itself is nothing wrong, as it is the result of the diversification of effectiveness of factors of production, including work, the growing disparities to a large extent cannot be justified. Economic situation of the society members increasingly depends not on the contribution of work, but on the size of the capital invested, and the market position of the economic entity, and on the “governing power of capital” on the market. It should also be noted that this diversification is also related to speculative activities. Disparities between the implemented economic and social innovations can lead to the collapse of the progress of civilisation. Nowadays, economic crises are often justified by, indeed, social and political considerations, such as marginalisation of nation states, imbalance of power (or imbalance of fear), religious conflicts, nationalism, chauvinism, etc. It is also considered that the first global financial crisis of the 21st century originated from the wrong social policy pursued by the US Government, which led to the creation of a gigantic public debt, which consequently led to an economic breakdown. This resulted in the financial crisis, but also in deepening of the social imbalances and widening of the circles of poverty and social exclusion. It can even be stated that it was a crisis in public confidence. Therefore, the causes of crises are the conflicts between the economic dimension of the development and its social dimension. Contemporary world is filled with various innovations of economic or business nature (including technological, product, marketing, and in part – organisational). The existing solutions can be a source of economic progress, which is a component of the progress of civilisation. However, economic innovations do not complete the entire progress of civilisation moreover, the saturation, and often supersaturation with implementations and economic innovations leads to an excessive use of material factors of production. As a consequence, it results in lowering of the efficiency of their use, unnecessary extra burden to the planet, and passing of the negative effects on the society and future generations (of consumers). On the other hand, it leads to forcing the consumption of durable consumer goods, and gathering them “just in case”, and also to the low degree of their use (e.g. more cars in a household than its members results in the additional load on traffic routes, which results in an increase in the inconvenience of movement of people, thus to the reduction of the quality of life). Introduction of yet another economic innovation will not solve this problem. It can be solved only by social innovations that are in a permanent shortage. A social innovation which fosters solving the issue of excessive accumulation of tangible production goods is a developing phenomenon called sharing economy. It is based on the principle: “the use of a service provided by some welfare does not require being its owner”. This principle allows for an economic use of resources located in households, but which have been “latent” so far. In this way, increasing of the scope of services provided (transport, residential and tourist accommodation) does not require any growth of additional tangible resources of factors of production. So, it contributes to the growth of household incomes, and inhibition of loading the planet with material goods processed by man [see Poniatowska-Jaksch, Sobiecki, 2016]. Another example: we live in times, in which, contrary to the law of T. Malthus, the planet is able to feed all people, that is to guarantee their minimum required nutrients. But still, millions of people die of starvation and malnutrition, but also due to obesity. Can this problem be solved with another economic innovation? Certainly not! Economic innovations will certainly help to partially solve the problem of nutrition, at least by the new methods of storing and preservation of foods, to reduce its waste in the phase of storage and transport. However, a key condition to solve this problem is to create and implement an innovation of a social nature (in many cases also political). We will not be able to speak about the progress of civilisation in a situation, where there are people dying of starvation and malnutrition. A growing global social concern, resulting from implementation of an economic (technological) innovation will be robotisation, and more specifically – the effects arising from its dissemination on a large scale. So far, the issue has been postponed due to globalisation of the labour market, which led to cheapening of the work factor by more than ten times in the countries of Asia or South America. But it ends slowly. Labour becomes more and more expensive, which means that the robots become relatively cheap. The mechanism leading to low prices of the labour factor expires. Wages increase, and this changes the relationship of the prices of capital and labour. Capital becomes relatively cheaper and cheaper, and this leads to reducing of the demand for work, at the same time increasing the demand for capital (in the form of robots). The introduction of robots will be an effect of the phenomenon of substitution of the factors of production. A cheaper factor (in this case capital in the form of robots) will be cheaper than the same activities performed by man. According to W. Szymański [2017], such change is a dysfunction of capitalism. A great challenge, because capitalism is based on the market-driven shaping of income. The market-driven shaping of income means that the income is derived from the sale of the factors of production. Most people have income from employment. Robots change this mechanism. It is estimated that scientific progress allows to create such number of robots that will replace billion people in the world. What will happen to those “superseded”, what will replace the income from human labour? Capitalism will face an institutional challenge, and must replace the market-driven shaping of income with another, new one. The introduction of robots means microeconomic battle with the barrier of demand. To sell more, one needs to cut costs. The costs are lowered by the introduction of robots, but the use of robots reduces the demand for human labour. Lowering the demand for human labour results in the reduction of employment, and lower wages. Lower wages result in the reduction of the demand for goods and services. To increase the demand for goods and services, the companies must lower their costs, so they increase the involvement of robots, etc. A mechanism of the vicious circle appears If such a mass substitution of the factors of production is unfavourable from the point of view of stimulating the development of the economy, then something must be done to improve the adverse price relations for labour. How can the conditions of competition between a robot and a man be made equal, at least partially? Robots should be taxed. Bill Gates, among others, is a supporter of such a solution. However, this is only one of the tools that can be used. The solution of the problem requires a change in the mechanism, so a breakthrough innovation of a social and political nature. We can say that technological and product innovations force the creation of social and political innovations (maybe institutional changes). Product innovations solve some problems (e.g. they contribute to the reduction of production costs), but at the same time, give rise to others. Progress of civilisation for centuries and even millennia was primarily an intellectual progress. It was difficult to discuss economic progress at that time. Then we had to deal with the imbalance between the economic and the social element. The insufficiency of the economic factor (otherwise than it is today) was the reason for the tensions and crises. Estimates of growth indicate that the increase in industrial production from ancient times to the first industrial revolution, that is until about 1700, was 0.1-0.2 per year on average. Only the next centuries brought about systematically increasing pace of economic growth. During 1700- 1820, it was 0.5% on an annual average, and between 1820-1913 – 1.5%, and between 1913-2012 – 3.0% [Piketty, 2015, p. 97]. So, the significant pace of the economic growth is found only at the turn of the 19th and 20th century. Additionally, the growth in this period refers predominantly to Europe and North America. The countries on other continents were either stuck in colonialism, structurally similar to the medieval period, or “lived” on the history of their former glory, as, for example, China and Japan, or to a lesser extent some countries of the Middle East and South America. The growth, having then the signs of the modern growth, that is the growth based on technological progress, was attributed mainly to Europe and the United States. The progress of civilisation requires the creation of new social initiatives. Social innovations are indeed an additional capital to keep the social structure in balance. The social capital is seen as a means and purpose and as a primary source of new values for the members of the society. Social innovations also motivate every citizen to actively participate in this process. It is necessary, because traditional ways of solving social problems, even those known for a long time as unemployment, ageing of the society, or exclusion of considerable social and professional groups from the social and economic development, simply fail. “Old” problems are joined by new ones, such as the increase of social inequalities, climate change, or rapidly growing environmental pollution. New phenomena and problems require new solutions, changes to existing procedures, programmes, and often a completely different approach and instruments [Kowalczyk, Sobiecki, 2017].

Increasing world human population, declining reserves of cheaply extracted fossil fuels, scarcity of supplies of fresh water and climatic instability will put tremendous pressure on world rangelands as the 21st century progresses. It is expected that the human population of the world will increase by 40% by 2050 but fossil fuel and reserves of fresh water will be drastically reduced. Avoiding food shortages and famine could be a major world challenge within the next 10 years. Under these conditions, major changes in policies relating to economic growth and use of natural resources seem essential. Stabilisation of the human population, development of clean and renewable energy, enhanced supplies of water and its quality, increased livestock production, and changed land-use policies, that minimise agricultural land losses to development and fragmentation, will all be needed to avoid declining living conditions at the global level. The health and productivity of rangelands will need to receive much more emphasis as they are a primary source of vital ecosystem services and products essential to human life. Changes in tax policies by developed, affluent countries, such as the United States, Australia and Canada, are needed that emphasise saving and conservation as opposed to excessive material consumption and land development. Extreme levels of debt and chronic deficits in trade by the United States and European Union countries need to be moderated to avoid a devastating collision of debt, depletion of natural resources, and environmental degradation. Over the next 10 years, livestock producers of the rangelands will benefit from a major increase in demand and prices for meat. Rapidly increasing demand for meat in China and other Asian countries is driving this trend. Rangeland managers, however, will also likely encounter greater climatic, financial, biological and political risks. Higher interest rates, higher production costs and higher annual variability in forage resources are major challenges that will confront rangeland managers in the years ahead. Under these conditions, a low risk approach to livestock production from rangelands is recommended that involves conservative stocking, use of highly adapted livestock, and application of behavioural knowledge of livestock to efficiently use forage resources.

In the 21st century, sport is not just a fun, social cohesive force but also a business; it has become an independent industry by now and several countries possess developed sport markets. According to estimates, sport accounts for 4% of the EU’s GDP. The actuality of our research is given by the fact that the economic aspect of sports develops continuously which is also due to that more and more amounts already stream into sports in our days. In Hungary, sport is mainly state aided and has mostly financing problems while the sport businesses existing in the more developed Western Europe are principally sponsored by the private sector. The government considers sport as a strategic branch (HERCZEG et al, 2015) and manages as such because they see the international breakthrough potencies in sport as well. Sport companies must also adapt the business-based thinking, which requires the strategic planning and operation (BECSKY, 2011). The research covers the subject of economic approach of the players’ rights. The task of accounting is to give a true and fair image about the property, income and financial situation of an undertaking. Information provided by accounting is essential for both the management decisionmaking and the market operators. In Hungary, the sports undertakings, as each managing entity, have to prepare their statements according to the Act C of 2000 on Accounting (AoA.) (NAGY – BÁCSNÉ BÁBA, 2014). The purpose of this research is to examine how a domestic sports undertaking demonstrates the value of available players in the books and how the incomes and expenditures incurred with the players are accounted for, based on the regulations of the Hungarian, international associations and the Union of European Football Associations (hereinafter: UEFA). In order that the leaders of the businesses can make quick and appropriate economic decisions, it is essential in this intensively changing world that an enterprise should have a well-functioning accounting system based on up-to-date information. International Financial Reporting Standards (hereinafter: IFRS) are intended to provide the comparability across borders. Firstly, we deal with the accounting reporting system, both the Hungarian, international financial reporting standards and, relating to UEFA, the investigation of the intangible assets to a great extent during analysing the balance sheets. Then, we examine the income statements from the viewpoint player transfers. To what extent the rules of a statement laid down by UEFA differ from the ones of a statement prepared according to AoA? What is the difference in domestic and international relations? In this study, we search after the answers for questions mentioned before.

The financial crisis has adversely affected all the countries of the world in the conditions of globalization with different intensity, no matter if it is higher or lower level of development and different economic structures. In the context of globalization in the countries in transition, the banking system was reformed, thus creating a new financial market. The International Monetary Fund has taken an active part in the transition process of Eastern European countries by providing advice and approving financial arrangements. Developed countries of the world have implemented measures of non-standard monetary policy to overcome the global financial crisis. In some parts of Central and Eastern Europe, in addition to the general corporate identity (bank name, abbreviated name, trademark and slogan of the bank), the countries also applied qualitative features of the bank's corporate identity (image, reputation and goodwill). As they enter the 21st century, banks in developed countries are increasingly emphasizing the corporate culture and style of business of the bank. In the practice of banks, the following performances are most often present: financial, marketing, performance management, employee performance, business philosophy, reputation and the image of the bank. The banks' performance analysis included 13 Central and Eastern European countries divided into three groups. Performance over the period 2008-2018 is analyzed, related to: share of total assets in GDP, share of total loans in GDP, share of total deposit in GDP and level of capital adequacy of Central and Eastern European countries. The analysis shows that the central banks of the countries of Central Europe are dominant, and that in certain performances they are approached by the banks of the countries of Eastern Europe (members of the European Union and the Western Balkans).

The paper aims at assessing the changes in flows of selected forms of capital under deepening financial integration in the European Union. EU Member States are divided into two groups: members of the euro area and those outside of it. The analysis coincides with the establishing of the EU monetary union and covers the turn and early 21st century. We have reviewed major theoretical concepts providing grounds for further considerations. Together with the progressing financial integration of the EU Member States there is an increase in the overall value of financial flows measured with net IIP. Research method applied in this particular study includes the overview of theoretical concepts, literature review and a comparative analysis based on statistical data. Analyses of selected data revealed significant differences between developed and developing countries when it comes to various forms of net capital and its relation to the GDP based on the International Investment Position. The analysis of the degree of financial and trade integration of the Eurozone countries compared to the Member States outside of the euro area demonstrated that the two groups are at two opposite extremes.

Abstract Since the onset of the global financial crisis in 2008, the EU has been tested and contested as it struggled to come to terms with a series of crises, sometimes labelled a polycrisis. In response to crises, the EU has emerged as a collective power and the concept ‘Collective Power Europe’ (CPE) offers a promising lens with which to analyse the 21st-century European Union and the nature of the polity that is emerging. The aim of this article is to unpack the concept of CPE and to analyse its core features – collective leadership and framing, institutional coordination and the evolving policy toolkit – in response to three crises: Brexit, the COVID-19 pandemic and the war in Ukraine.

Lithuania’s economy has gone through stages of feudal system, serfdom, centrally planned command economy and market-based economy. After its liberation at the end of the last century, Lithuania’s transition is in process, as evidenced by the development of economic frameworks. Radical reforms, including the opening of markets, implementation of flat tax rates, rapid privatization of businesses, and efforts to maintain a stable currency, set the tone for phenomenal economic growth, not only in Lithuania, but in neighboring Estonia and Latvia as well. The Baltic Region experienced monumental growth in the mid to late 1990s, which accelerated through the early 21st century. Sweeping reforms and growth culminated with the accession of Lithuania into the European Union in 2004. The combined economic story of Lithuania, Estonia and Latvia is quite comparable to that of the Asian Tigers of South Korea, Hong Kong, Singapore, and Taiwan. The three countries have thus earned the title of The Baltic Tigers. Lithuania’s accession into the EU fostered further development of the country and its economy on both the financial and political fronts.