The formal recognition of the threat to the European Union allowed for _____ because the systemic risk clauses of Articles 123 and 125 were invoked.

Question

Quizplus · Accepted Answer

The invocation of systemic risk clauses of Articles 123 and 125 allowed for cross-national bailouts to occur, which involved financially stronger EU member states providing loans or assistance to struggling member states to prevent economic collapse and preserve the stability of the EU. Increases in spending, tax cuts, and the purchase of debt by the European Central Bank are not directly related to the formal recognition of the threat to the European Union.

The Formal Recognition of the Threat to the European Union