International institutions and the power of the EU: How has it been affected by the financial crisis? (PDF)

Power shifts happened several times throughout history, but they do not occur frequently and are often connected with the use of force. Presently, there is a power shift from the western industrialized states, e.g., from member states of the European Union (EU), to Asian states, in particular China. However, in spite of this growth, it is disputed to what extent the rise of these economies already transcended into power and how it will develop in the future.
What is clear by now is that the recent global financial and economic crisis was the worst one in post World War II history. The crisis emerged in the United States and then spread to the EU and to other countries. It led to quickly rising public debt levels in western industrialized states.
During this time, states like China or India extended their participation within global economic governance foras, such as the International Monetary Fund (IMF) or the G20. This raises the question of how the power of the European Union within these international institutions was affected by the crisis? The purpose of this publication is to research this question.
Consequently, the examination is situated within the domain of the global financial and economic crisis, the shift of power and the power of the EU in international institutions. In order to give an answer to the above stated question, the power shift in international institutions during the time of crisis is to be assessed. The IMF and the G20 are analyzed in depth in order to shed light on the topic. The results then help to identify the trend of EU power.