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Palgrave Macmillan

The Eurozone Crisis and the Future of Europe

The Political Economy of Further Integration and Governance

ISBN 9781137356741
Publication Date August 2014
Formats Hardcover Ebook (EPUB) Ebook (PDF) 
Publisher Palgrave Macmillan
Series International Political Economy Series

The authors uncover the roots of the eurozone crisis, focusing on various approaches on how it can be solved against the backdrop of a very deep financial and economic crisis and its strong social impact. They investigate the recent and future developments in the European Union showing that the financial crisis complicates institutional and policy repair in the EU as well as the stablishment of a lasting economic recovery. The fate of the eurozone underlies the future of the European Union, as any disarray at the core of the EU puts strong destabilizing forces into motion. Budget profligacy is far from explaining the depth of the current crisis in the eurozone; a flawed design and inadequate policy arrangements, which have invited rising imbalances among EU member states, are no less important in explaining the plight of and the disaffection in the eurozone. Even though the Banking Union project will provide a definitive solution to enhancing the cohesion of the eurozone, there are important technicalities and sequencing problems that still need clarification. Further policy arrangements going beyond the operations of a banking union will be needed in order to make the eurozone and EU function properly.

Daniel Dăianu is Professor of Economics at the National School of Political and Administrative Studies, Bucharest, Romania. He is the former Finance Minister of Romania and MEP and is currently a member of the ECFR and of the Romanian Academy. Among his most recent publications is the monograph Which Way Goes Capitalism?(2009).

Giorgio Basevi is Professor Emeritus of International Economics at the University of Bologna, Italy. He has been a member of the European Economic Association, the Italian Economic Association and the Centre for Economic Policy Research, and Treasurer of the European Economic Association. He is currently a Research Network Fellow at CESifo, and Fellow of the European Economic Association.

Carlo D'Adda is Professor Emeritus at the University of Bologna and member of the Accademia Nazionale dei Lincei, Rome, Italy. He is a former president of the Italian Economic Association (2001–2004).
Rajeesh Kumar is Researcher at the Centre for International Politics, Organization and Disarmament, School of International Studies, Jawaharlal Nehru University, New Delhi, India. He taught at Jamia Millia Islamia and Calicut University, India.

1. Introduction; Daniel Daianu and Rajeesh Kumar
2. Overview: Analytics of the Euro Area Crisis; Carlo D'Adda and Giorgio Basevi
3. The Diversity of Debt Crises in Europe; Jerome Stein
4. European Sovereign debt Crisis and the Euro'; Julius Horvath and Martin Suster
5. Economic Policies and the debt/GDP Constraint: The European Challenge'; Radu Vranceanu
6. Current Account Imbalances in the Eurozone: Causes, Remedies and the Role of the ECB; Karhans Sauernheimer
7. The Euro Crisis and German Primacy; Jonathan Story
8. The Power of Ordoliberalism in the Eurozone Crisis Management; Brigitte Young
9. Italy and the Euro; Carlo D'Adda
10. Turning a Small Problem into Catastrophe: The Case of Greece; Kunibert Raffer
11. The Eurozone crisis. A Perspective from and Impact on Asia; Pradumna B. Rana and Michael R. Blomenhofer
12. The EMU is No One-Way-Street: Back to the Roots!; Bodo Herzog
13. Changing Welfare States and the Euro Crisis; Anton Hemerijck
14. The long Term Implications of the Euro Crisis for European Integration: A Deeper Union of Fragmentation; Francesco Nicoli and Fabian Zuleeg
15; The Euro Area : Repairing A Flawed Design and Its Policy Arrangements; Daniel Daianu
16. Afterword: Summing up: The Crisis and Europe's Future; Daniel Daianu and Rajeesh Kumar

Anton Hemerijck, VU University Amsterdam, The Netherlands
Bodo Herzog, Reutlingen-University, Germany
Brigitte Young, University of Muenster, Germany
Fabian Zuleeg, European Policy Centre, Belgium
Francesco Nicoli, European Policy Centre, Belgium
Giorgio Basevi, University of Bologna, Italy
Jerome L. Stein, Brown University, USA
Jonathan Story, INSEAD, France
Julius Horvath, Central European University, Hungary
Karlhans Sauernheimer, Johannes Gutenberg-University, Germany
Kunibert Raffer, University of Vienna, Austria
Martin Suster, National Bank of Slovakia, Bratislava
Michael R. Blomenhofer, Kroll, Singapore
Pradumna B. Rana, Nanyang Technological University, Singapore
Radu Vranceanu, ESSEC Business School, Paris, France


"As the conventional wisdom goes, the euro crisis resulted from the combination of many factors: the subprime/global financial crisis, real estate bubbles, excessive government deficits, the debts of some countries of the eurozone and so on. This book goes beyond these standard rationales. Instead, it highlights how the loss of competitiveness in Southern countries led to a widely neglected but highly influential phenomenon, namely, a sharp increase in external debt. By analyzing all aspects of the euro crisis, this work raises fundamental questions about the relevance and sustainability of the euro for a group of countries whose competitiveness and unit labour costs vary so widely. This book makes a valuable contribution by offering a unique perspective on efforts to understand the euro crisis." - Serge Rey, University of PAU
"This volume examines the eurozone crisis in depth, from all points of view, and in a scholarly manner (but intelligible also by the layman). A gem is the chapter by the late Jerome Stein on the diversity of debt crises in Europe, based on his NATREX model. I highly recommend this book not only to professionals, but also to the general public of interested persons." - Giancarlo Gandolfo, Accademia Nazionale dei Lincei, Rome, Italy
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