Issue 6, 2011

The reasons, development and the effects of the crisis on the government debts in the European Monetary Union are analyzed in this article. The conclusion is justified, that a single currency for diverse economies does not result in economic convergence, but on the contrary – economic divergence. The macroeconomic criteria for a nominal convergence, that must be met by each applicant country for EMU, do not necessarily open the way to a real convergence. The development of the crisis-related processes in the Eurozone is focussed, starting from Greece. Later Ireland and Portugal have also been affected by the financial contamination. The conditions for the rescue packages, granted officially to the three countries are examined. The increased costs for market financing of the government debts concerns Italy and Spain. The effects for Bulgaria from the government debt crisis in the Eurozone could be considered controversial.

JEL: F34; F36; H63

The main prerequisites are focused for the emergence of credit, construction and property boom, resulting in tremendous losses for the banking sector (saved with taxpayers' money) and in the necessity Ireland to be rescued from the sovereign bankruptcy by means of an international loan of EUR 85 billion. The too low interest rates after 1999 (when the country entered the Eurozone) and the low criteria for bank crediting are identified as key factors for the property boom. More stringent global regulations (especially in the banking sector) are required in the future in order to avoid the destructive recessionary effects of the credit and housing bubbles.

JEL: H63; R21; R31

The nature and significance of corporate strategies are elucidated, where the patents for inventions are the main tools to meet the targets – growth, stabilization, corporate consolidation and survival. The patent and license strategies of the industries are classified according to various criteria. Charts are presented of two types of market situations of specialized markets (of technologies and production), involving patents and know-how.

JEL: O30; O31; O34; O39

The idea is justified, that the sustainable corporate development is determined by the compatibility level of emerging working situation, leader approach and corporate culture. The interaction is analyzed among management factors such as: types of administrative processes, available resources and corporate targets, social corporate responsibility, industrial results and the time frame required for their implementation. An integral leader model for sustainable development is elaborated, being fundamental in identifying the key leader roles in the organization.

JEL: L20; L25