Eurozone crisis

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    Can only Eurosceptics oppose austerity? How divisions over integration have replaced the left/right divide in the European Parliament

Can only Eurosceptics oppose austerity? How divisions over integration have replaced the left/right divide in the European Parliament

How do economic platforms interact with support for European integration? Harmen van der Veer and Simon Otjes write that the dynamics within the European Parliament have undergone a shift since the beginning of the Eurozone crisis. Whereas in previous periods the key divide in the Parliament centred on left/right issues, opposition to European integration has now become intertwined with […]

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    The European Commission experienced a ‘subtle disempowerment’ during the Eurozone crisis

The European Commission experienced a ‘subtle disempowerment’ during the Eurozone crisis

How did the Eurozone crisis affect the balance of power between the EU’s institutions? As Eugénia da Conceição-Heldt writes, opinion has been split over whether the crisis strengthened or damaged the European Commission’s role in EU decision-making. She argues that while some authors have highlighted an apparent increase in the Commission’s responsibilities over economic governance during the crisis, the […]

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    Still mere figureheads? Why the Eurozone crisis has led to the growth of presidential power across Europe

Still mere figureheads? Why the Eurozone crisis has led to the growth of presidential power across Europe

Presidents are a relatively common feature in the political systems of European states, yet their powers vary substantially from country to country. Macdara Dwyer writes that while many presidents are intended to act largely as figureheads, with only limited responsibilities over government formation, the Eurozone crisis has led to a growth in presidential power in several states, including Greece, […]

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    Five minutes with Javier Solana: ‘Europe must respond to the refugee crisis as it would have liked the world to respond to its suffering’

Five minutes with Javier Solana: ‘Europe must respond to the refugee crisis as it would have liked the world to respond to its suffering’

How should the EU respond to the multiple challenges it presently faces, from economic malaise to the refugee crisis and the conflict in Ukraine? In an interview with EUROPP’s editor Stuart Brown, Javier Solana discusses why Europe should take inspiration from its experience during two world wars in its efforts to help refugees, how the EU can play a greater role […]

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    Why European integration remains the best option for meeting the challenges posed by globalisation

Why European integration remains the best option for meeting the challenges posed by globalisation

Faced with a debt crisis in Greece and a refugee crisis on Europe’s borders, the European Union is currently navigating one of the most difficult periods in its history. But do these crises offer justification for scaling back European integration? Lukas Hakelberg and Zoe Lefkofridi write that more integration not only offers the most natural solution for resolving these […]

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    Germany is stuck with a crisis it did not foresee and can no longer control

Germany is stuck with a crisis it did not foresee and can no longer control

Germany is often described as a ‘reluctant hegemon’ in the sense that it has found itself pushed to the centre of EU affairs by the Eurozone crisis. Peter Nedergaard and Holly Snaith write that the increasing importance of Germany in the EU has resulted in a particular brand of German ‘ordoliberal’ thinking becoming institutionalised at the European level. They […]

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    Saving the euro at all costs could lead to the hollowing out of European democracy

Saving the euro at all costs could lead to the hollowing out of European democracy

Since the financial crisis, a process of change has been underway which has seen a new model of technocratic financial and economic governance take hold across Europe. Alexander Ruser argues that these reforms, motivated by a desire to save the euro ‘at all costs’, could bring about the hollowing out of democracy, with the will of the people increasingly […]

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    With Greek debt negotiations at a critical phase it is time for Germany to end its policy of ‘muddling through’

With Greek debt negotiations at a critical phase it is time for Germany to end its policy of ‘muddling through’

The Greek government is currently attempting to negotiate a deal with other Eurozone states over the country’s debt. Joshua Aizenman writes on the approach of Germany throughout the crisis. He argues that the German government’s perspective is best characterised as a form of ‘muddling through’, whereby stronger action to solve the Eurozone’s instability is only advocated when Germany’s domestic […]

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    Two years after Mario Draghi’s ‘whatever it takes’ moment, the Eurozone is once again staring into the abyss

Two years after Mario Draghi’s ‘whatever it takes’ moment, the Eurozone is once again staring into the abyss

Growth in the Eurozone has declined significantly over recent months, raising fears that Europe could be heading toward another economic crisis. Bob Hancké writes on what it would take to generate growth in Eurozone states. He argues that the best – and possibly only – option for European governments is to adopt a strategy of public investment in infrastructure, […]

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    The European Parliament elections may be a landmark for Eurosceptics, but the EU’s future direction will be decided elsewhere

The European Parliament elections may be a landmark for Eurosceptics, but the EU’s future direction will be decided elsewhere

The European Parliament elections on 22-25 May are expected to see a large increase in seats for Eurosceptic parties across a number of EU countries. Seamus Nevin writes that while a result of this nature would prompt a wide debate about the quality of EU democracy, the key decisions shaping Europe’s future will nevertheless be made elsewhere. The real […]

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    The Eurozone crisis has laid the foundations for Poland to take a more central role in EU affairs

The Eurozone crisis has laid the foundations for Poland to take a more central role in EU affairs

Poland became an EU member during the 2004 enlargement, but has yet to join the euro. Agata Gostyńska assesses the first ten years of Polish EU membership and the potential for the country to take a more central role in EU decision-making. She writes that Poland has made a successful transition from a ‘junior member state’ to a stronger […]

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    The lack of monetary sovereignty is not the reason Eurozone countries struggled during the crisis

The lack of monetary sovereignty is not the reason Eurozone countries struggled during the crisis

One of the most widespread arguments about the Eurozone crisis is that countries such as Greece, Spain and Italy have been hamstrung by their lack of monetary sovereignty and the ability to devalue their own currency. Deborah Mabbett and Waltraud Schelkle assess this perspective by comparing the experiences of Greece with Hungary, which does not use the euro, and […]

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    What has been agreed on banking union risks reigniting, rather than resolving the crisis

What has been agreed on banking union risks reigniting, rather than resolving the crisis

In December 2013 EU finance ministers negotiated an agreement aimed at establishing a banking union, with further talks between the European Parliament and the Member States ending in an agreement last week. Iain Begg provides a detailed overview of the main objectives of banking union and what has been agreed so far. He argues that while European leaders have […]

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Why the European Court of Justice should reject the German Constitutional Court’s ruling on Outright Monetary Transactions

Despite having a positive effect on the economic situation within the Eurozone, the European Central Bank’s Outright Monetary Transactions (OMT) program has proved controversial, with the German Constitutional Court in Karlsruhe recently deeming it illegal under EU law. Paul De Grauwe argues that the ruling reflects a serious misunderstanding of central banking on the part of the German Court, and […]

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The German economy is not as strong as it looks because of low internal investment and adverse demographic trends

The German economy has generally been perceived as the strongest in the Eurozone, particularly since the start of the financial crisis. Terence Tse argues that while the country has impressive headline economic figures, the situation is not quite as healthy as it appears. He notes that levels of internal investment are relatively low in comparison to other European countries, and […]

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Despite the crisis, the euro has more than doubled trade among Eurozone members

The Eurozone crisis has raised doubts about the rationale which underpinned the creation of the single currency. Tal Sadeh writes that despite early difficulties in accurately quantifying the trade benefits brought about by the euro, recent research shows that it has more than doubled trade among its member states. Moreover, while the Eurozone crisis has created more substantial problems in […]

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Europe’s ‘structural reform’ agenda is little more than a fairytale

The policy response to the Eurozone crisis has incorporated a number of different elements, including the structural reform of European economies. Aidan Regan argues that this ‘structural reform agenda’ has been defined in exceptionally vague terms, and that it is still unclear precisely which reforms would lead to tangible economic improvements in European countries. He writes that with the European […]

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The EU’s latest agreement is still some distance from a fully-fledged banking union

Eurozone finance ministers have agreed a new system for dealing with failing European banks, with the agreement being seen as an important step toward creating a European ‘banking union’. Emmanuel Mourlon-Druol writes that while the aim of creating a banking union has been portrayed as a relatively recent phenomenon, it has a much longer history stretching back to the early […]

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Southern Europe should consider an economic ‘third way’ to tackle unemployment and inequality

Several countries across Europe have experienced persistent problems with unemployment since the start of the financial crisis. Alexandre Afonso writes that southern European countries are faced with a choice between adopting either Anglo-Saxon style market liberalisation or Nordic style welfare spending as part of their response to the problem. Seeing neither as a feasible option, he proposes an alternative strategy […]

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EU summit meetings have had little effect on financial markets during the Eurozone crisis

European crisis management and EU summit meetings have become increasingly significant during the financial crisis. Dieter Smeets examines whether crisis meetings of European heads of state had a significant impact on Europe’s financial markets. He assesses their effect on member states’ sovereign bond yields, stock market indices and the exchange rate of the common currency, but finds limited impact. He […]

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