Managing the Eurozone Crisis

2020 ◽  
pp. 223-238
Author(s):  
Manuela Moschella
Keyword(s):  
Crisis Management ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Eurozone Crisis ◽  
Management Competencies ◽  
Advanced Economies ◽  
Institutional Architecture ◽  
And Control ◽  
Shed Light ◽  
The Imf

In the wake of the sovereign debt crisis, some of the most advanced economies in the world turned to the IMF for financial assistance. Not only did the Eurozone countries ask for the Fund’s help; they also incorporated the IMF into the institutional architecture for handling crises in the European Monetary Union. This chapter uses competence–control theory to shed light on the puzzles raised by the decision to enlist the IMF in Eurozone crisis management. Firstly, the chapter argues that the Eurozone’s motivation for enlisting the IMF can be found in the competence deficit its governors confronted in managing the crisis. In particular, Eurozone countries lacked sufficient competence (including expertise, money, and credibility) to formulate and enforce adjustment in crisis-hit countries. By enlisting the IMF, Eurozone countries acquired the necessary competence but had to share control. Secondly, the chapter shows that the tradeoff between competence and control shifted over time: even after creating their own crisis management competencies, member states continued to enlist the IMF as a way to reduce the control problems that creditor states confronted in enforcing adjustment in debtor countries.

Has Germany “Fallen Out of Love” with Europe? The Eurozone Crisis and the “Normalization” of Germany's European Identity

2015 ◽  
Vol 33 (1) ◽  
pp. 25-41 ◽  
Author(s):  
Charlotte Galpin
Keyword(s):  
National Identity ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
European Identity ◽  
Media Discourse ◽  
The European Union ◽  
Eurozone Crisis ◽  
Northern European ◽  
European Crisis ◽  
Political Speeches

The European Union has been in its biggest ever crisis since the onset of the Greek sovereign debt crisis in 2010. Beyond the political and economic dimensions, the crisis has also sparked discussions about Germany's European identity. Some scholars have argued that Germany's behavior in the crisis signals a continuation of the process of “normalization” of its European identity toward a stronger articulation of national identity and interests, that it has “fallen out of love” with Europe. This article will seek to reassess these claims, drawing on detailed analysis of political and media discourse in Germany—from political speeches through to both broadsheet and tabloid newspapers. It will argue that the crisis is understood broadly as a European crisis in Germany, where the original values of European integration are at stake. Furthermore, the crisis is debated through the lens of European solidarity, albeit with a particular German flavor of solidarity that draws on the economic tradition of ordoliberalism. Rather than strengthening expressions of national identity, this has resulted in the emergence of a new northern European identity in contrast to Greece or “southern Europe.”

scholarly journals Out of the comfort zone? The ECB, financial assistance, independence and accountability

2019 ◽  
Vol 26 (1) ◽  
pp. 108-121
Author(s):  
Paul Dermine
Keyword(s):  
Debt Crisis ◽  
Financial Assistance ◽  
Economic And Monetary Union ◽  
Eurozone Crisis ◽  
Comfort Zone ◽  
European Central ◽  
The Core ◽  
Policy Fields ◽  
Redistributive Effects ◽  
Institutional Architecture

The European debt crisis (Eurozone crisis) precipitated an unprecedented reconfiguration of the institutional architecture of the Economic and Monetary Union. At the core of such overhaul was the establishment of a financial assistance function specific to the Eurozone. From the outset, there has been a clear will to closely involve the European Central Bank (ECB) at all stages of the operation of this new function. The ECB, an institution endowed with a monetary mandate, has thus entered the field of economic policy. Against that background, this paper intends to investigate the legal and political accountability arrangements the ECB is subject to in that new context. Both the texts organizing the intervention of the ECB and its subsequent practice reveal, so the paper will show, that the ECB’s action in that particular context is mainly conceived as falling under its monetary mandate, and thus as being covered by its independence. The paper will argue that this situation is legally problematic, especially in view of the deep interpenetration between the economic and the monetary policy fields and the redistributive effects of the choices made. It will also claim that the ECB’s independence in that particular context, and the accountability structures it is subject to, should be adjusted.

The Eurozone crisis and Italian corporate governance: the end of blockholding?

Modern Italy ◽  
2015 ◽  
Vol 20 (4) ◽  
pp. 365-378 ◽  
Author(s):  
Fabio Bulfone
Keyword(s):  
Corporate Governance ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Informal Institutions ◽  
Eurozone Crisis ◽  
Process Of Change ◽  
Business Elites ◽  
Legal Reforms ◽  
Italian Case ◽  
Behavioural Patterns

This article explains the process of change in domestic corporate governance. An actor-centred coalitional approach is applied to the Italian case to show how the main features of domestic corporate governance are a product of behavioural patterns (i.e. informal institutions), rather than formal legislation. Leveraging their superior financial means, business elites act as institutional incumbents shaping these informal institutions according to their preferences. It is argued that a change in corporate practices is more likely to be triggered by a socio-economic crisis, which weakens the domestic elite's influence, rather than a legal reform. These findings call into question the excessively formalistic approach of many corporate governance scholars, and are confirmed by the Italian trajectory. After having resisted 20 years of liberalising legal reforms aimed at eroding their power, Italian blockholders are now being forced, as a consequence of the Eurozone sovereign debt crisis, to dismantle their cross-shareholding networks.

Challenging EU Legality

2021 ◽  
pp. 1-14
Author(s):  
Claire Kilpatrick ◽  
Joanne Scott
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Legal Order ◽  
The Other ◽  
Political Organization ◽  
Sovereign Debt Crisis ◽  
European Court ◽  
Cast Doubt ◽  
Shed Light

This introduction explores what we mean when we talk about contemporary challenges to EU legality. Broadly, these involve actions or activities that cast doubt on the premises, principles, and norms that underpin the EU’s legal order as shaped by the Treaties and the judgments of the European Court. The chapter provides an initial taxonomy based on examples from the sovereign debt crisis and considers how the other contributions in the volume adjust or amplify that taxonomy. It shows that by looking at both ‘standard legality’ and legality exceptionalism in relation to EU legality, we can shed light both on the nature of the EU as a political organization and more specifically on the nature and role of law within it.

The building of economic governance in the European Union

2013 ◽  
Vol 19 (1) ◽  
pp. 23-35 ◽  
Author(s):  
Amy Verdun
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Social Dimension ◽  
Monetary Integration ◽  
Economic Governance ◽  
The European Union ◽  
The Past ◽  
The Social ◽  
Shed Light ◽  
The Eu

This article seeks to shed light on the development over the past decades of the concept of economic governance. It asks what is understood by economic governance and what role the social dimension has played. The article offers an analysis of the problems and possible issues confronting the EU as it seeks ways to address the sovereign debt crisis by embarking on deeper economic integration. The article concludes that from the early days there have been questions about the exact interaction between economic and monetary integration and thus between ‘economic’ and ‘monetary’ union. Despite Delors’ original inclination, few were willing to establish any linkage between EMU and social matters. The crises have again brought out the need to consider the two in tandem. Moreover, with the increased role in economic governance accorded to EU-level institutions, there is a need to rethink the EU democratic model.

From agenda setters to agenda takers? The determinants of party issue attention in times of crisis

2018 ◽  
Vol 24 (1) ◽  
pp. 65-77 ◽  
Author(s):  
Enrico Borghetto ◽  
Federico Russo
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Political Representation ◽  
Economic Conditions ◽  
Southern Europe ◽  
Sovereign Debt Crisis ◽  
Eurozone Crisis ◽  
Democratic Representation ◽  
Issue Attention ◽  
The Impact

Question time represents one of the most relevant institutional arenas where parties compete to get their favourite issues on the parliamentary agenda. Parties select which issue to address by weighing up two commitments simultaneously: fulfilling the party mandate received by their voters at election time and responding to the current priorities of voters. This article assesses the extent to which the recent sovereign debt crisis impacted the way parties balance these two imperatives of democratic representation. Through the issue coding of around 10,000 parliamentary oral questions tabled in Italy, Portugal and Spain between 2003 and 2014, the analysis shows that the worsening of economic conditions intensified the impact of citizens’ priorities. However, there is no clear evidence of a decline in the importance of the party mandate for either the majority or opposition parties. These findings offer insights on the topic of party political representation in Southern Europe and whether it was affected by the Eurozone crisis.

The Economics and Law of Sovereign Debt and Risk Sharing: Some Lessons from the Eurozone Crisis

2016 ◽  
Vol 12 (3) ◽  
Author(s):  
Kaushik Basu
Keyword(s):  
Sovereign Debt ◽  
Risk Sharing ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Eurozone Crisis ◽  
Joint Liability ◽  
Legal Provisions ◽  
Simple Theoretical Model ◽  
The Creation

AbstractAnalyzing the source of the Eurozone sovereign debt crisis, the paper argues the need for greater risk sharing and joint liability across sovereigns. This will require amending some of the legal provisions that underlie the European Union and the creation of the Euro. Once this is done it will be possible to consider the creation of Eurobonds and other liability arrangements, which can promote investment and job creation. A simple theoretical model is presented to bolster the argument.

scholarly journals Neoliberalism, trade imbalances, and economic policy in the Eurozone crisis

Nova Economia ◽  
2015 ◽  
Vol 25 (spe) ◽  
pp. 749-775 ◽  
Author(s):  
Engelbert Stockhammer ◽  
Collin Constantine ◽  
Severin Reissl
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Current Account ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Eurozone Crisis ◽  
Fundamental Cause ◽  
Current Account Imbalances ◽  
Fiscal And Monetary Policy ◽  
Account Imbalances

Abstract: This paper analyzes the causes of the Eurozone crisis. In doing so,it carefully surveysauthors from different economic schools of thought. The paper discusses competing explanations for European current account imbalances. Remarkably, opposing views on the relative importance of cost developments and demand developments in explaining current account imbalances can be found in both heterodox and orthodox economics. Regarding the assessment of fiscal and monetary policy there is a clearer polarisation, with heterodox analysis regarding austerity as unhelpful and most of orthodox economics endorsing it. We advocate a post-Keynesian view,which holds that current account imbalances are not a fundamental cause of the sovereign debt crisis. Rather, the economic policy architecture of the Eurozone, which aims at restricting the role of fiscal and monetary policy, is the key to understanding the crisis in Europe.

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