A new, useful report by Prof. Sideek Mohamed Seyad provides a legal analysis of the global financial crisis from a European perspective.
According to Prof. Seyad, it is difficult to coordinate a common approach in an emergency situation under the EU legal system. One of the reasons is that the European Union has no competence to legislate in some areas, such as taxation. In other sectors, such as the cross-border provision of banking services, regulation is to a great extent handled at the national level.
The report says that in responding to the crisis, national interests began to override the broader goal of European integration as Member States adopted various measures to protect their own industries.
A general conclusion is that the future stability and unity of the EU would largely depend on the restoration of normalcy in the eastern part of its territory.