This diploma thesis focuses on fiscal deficits in the Eurozone and possible consequences of their existence. The current state of public finances caused by insufficient fiscal responsibility of member states is discussed in the context of the debt and finance crisis, and related actions of the European Central Bank. The economic stability of the Eurozone is assessed in accordance with the theory of optimal currency areas. Using a monetary approach, the thesis presents circumstances that allow for a rise in inflationary pressures, also as a possible consequence of a debt monetization. The possible development of the indebtedness in the Eurozone and the critical points of public finance sustainability are discussed in the final part.

The introduction of euro in 2002 was considered to be a risky "experiment. Even before its actual existence, many economists have doubted the success of the Economic Monetary Union (EMU) emphasizing the potential costs of such a bold action. The traditional Optimum Currency Area by Mundell (1961), Mc Kinnon (1963) and Kenen (1969) has pointed out the loss of the exchange-rate mechanism and the structural differences among the member states as the main sources of costs within a monetary union. Ten years after the circulation of euro, the ongoing Greek debt crisis has revealed the imperfections of the EMU. Greece has become the "black sheep" of the union, having accumulated unsustainable levels of public debt and deficits that could pose a threat for the future of the Eurozone. It is widely believed that the profligate fiscal policies of the Greek government and the domestic flaws of the Greek economy have played an importan role on the country's debt crisis. However, the impact of Greece's accession to the EMU on the current crisis is still a moot question.

The thesis analyses the change of monetary policy of the European central bank during financial and sovereign debt crisis. Main focus of the thesis is given on the analysis of non-standard measures of monetary policy of the ECB. This thesis explains in detail how the ECB has responded to the various phases of the financial and debt crisis, starting with the period of financial turmoil, continuing with the intensification of the financial crisis and the sovereign debt crisis. Finally, the thesis compares these phases and assesses the impact of these non-standard measures.

This thesis analyses economic and political situation of France and its position during the evolution of the European integration process. The first chapter focuses on the role of France in the European integration process from its beginnings to the present. The second chapter discusses the current position of France in the EU and its attitude to reforms which address the issue of the euro zone debt crisis. The third chapter concentrates on the macroeconomic analysis of France from the perspective of the most important macroeconomic indicators and it also compares France with other EU countries.

Thesis uses game theory to explain behavior of certain states in the European sovereign-debt crisis. The goal is to find out, if those states use strategies leading to equilibrium i.e. if they maximize their expected utility. Theoretical part is based mainly on repeated games and Bayesian game. Thesis summarizes development of European sovereign-debt crisis and key economic indicators. It constructs a game model of the crisis and further analyses situation of Germany, France, Italy, Spain and Greece as players in the game. The game model is then tested on key conflict situations such as relations of France and Germany, first Greek bailout negotiations or Spanish bank bailout negotiations. The results show that chosen states do maximize their expected utility in one election period. However maximization of utility in two or more election periods is limited by the parameters of democratic election system - length of election periods and information asymmetry between voters and politicians. The costs of elimination of information asymmetry would be higher than the costs of debt crisis. So even considering the costs of debt crisis the states are in long term equilibrium.

In my graduation theses I deal with the eurozone crisis. This crisis can be seen in relation to the causes of it, as a result of many factors of varying importance - the global financial and economic crisis, the State lavishness, the construction of EMU, etc. Eurozone crisis can however be also seen in the inability of states to agree on the future appearance of the eurozone. In the first two chapters I analyze the first mentioned approach, namely financial and debt crisis with regard to their expensiveness. In detail I attend to interconnection of banking and debt crisis and the role of the ECB. In the second part I come to the principal point of my work, another approach to the crisis, namely the attitude of Germany to address problems of EMU. Germany therefore, that as the largest economy of EMU it forms it the most, but also carries the largest share of costs. I will analyze both the priorities of Germany, and his approach to promoted measures from the fiscal compact to Eurobonds. Eventually, through an analysis of the attitudes of actors in Germany - the German Government, the political opposition, the constitutional court, the Bundesbank, the German academics, public opinion - I come to a conclusion that the position of Germany is divided, however, at least for political representation I can not yet speak of fundamental contradictions. But it seems that the German population begins to differ in this way from their political representatives. The future will show us how serious this discrepancy will be and what results will it bring.

Banking crisis and following sovereign debt crisis are the cause of some changes on the financial market. This thesis is mainly focused on the debt crisis and its impact on financial sector stability. Roots, consequences and probable solutions of the debt crisis are also examined. Among analysed solutions were included proposals for financial transaction tax, stability bonds and regulation under new concept of CRD IV, bail-in and federalization of the eurozone. Analysed are also ratings, fiscal policy and optimality of the euro currency areas and its impact on stability of financial institutions. According to results, some proposals could be contrary to each other if implemented in its present form. Or it can increase moral hazard of financial institutions. Another consequence is establishment of new regulations. On the other hand, positive is that financial institutions have endured the sovereign debt crisis.

This diploma thesis deals with the debt crisis in the Euro Area. Thesis describes debt crisis in the eurozone in general and then crises in five most affected states - Portugal, Italy, Ireland, Greece and Spain. In addition there will be compared economic structures and macroeconomic indicators of two selected euro area countries - Spain and Italy. Thesis also contains a chapter in which opinions are expressed by several international and Czech economists. Opinions of economists in the world on the causes, consequences and possible solutions to the crisis are often diverge.

This paper analyses if European citizens are willing to show solidarity with debt-ridden EU member states during the recent crisis. Based on a theoretical concept comprehending four di-mensions of solidarity - generalised willingness to support, existence of social cleavages, rea-sons of supporting others, acceptance of conditions a crisis country has to meet to receive as-sistance - we derived hypotheses stating that the existence of a European wide solidarity is rather unlikely. We analysed data from two Eurobarometer surveys 2010 and 2011 and a unique survey conducted in Germany and Portugal in 2012. Descriptive and multilevel analyses indi-cated that in 2010 and 2011, a narrow majority of all EU citizens supported fiscal assistance for crisis countries, and socio-economic and cultural cleavages in attitudes regarding financial as-sistance for crisis countries were rather low. Findings from the two country comparison showed that the willingness to show solidarity was predominantly guided by moral reasoning instead of the respondent’s self-interest. However, German and Portuguese respondents disagree on austerity measures, with the exception of social spending cuts. Taken all together, we come to the conclusion that recent years have brought a new legitimacy to the use of EU bailout measures which are now a given European practice.

Peiwei Li Abstract: This paper is to investigate whether the Eurozone crisis brings similar effects to the economic growth of two groups of the EU's peripheral countries, including the PIIGS and the CEE countries. Greece, Ireland and Portugal from the PIIGS group; and the Czech Republic, Hungary and Poland from the CEE group are selected as the researched countries in this paper. In order to quantify how the Eurozone crisis affects the economic growth of these two groups of countries, this research utilises the statistical software STATA to operate a panel regression model with country and time fixed effects. The employed panel data contains selected indicators of the six researched countries over 2004-2018. Indicators that may affect economic growth of countries during the Eurozone crisis includes current account balance, FDI inflows, debt, exports and unemployment. Apart from the generation of overall results for all the six countries over 2004-2018, this paper generates a dummy variable "eurozone" to divide the researched countries into two groups. Therefore, it compares the results of each group. The research period also be equally divided into three stages: 2004-2008, 2009-2013 and 2014-2018, which represent for pre-crisis period, crisis period and post-crisis period. The divided periods are used to...