Tag Archives for Eurozone

The unintended euro and the problem of Italy

The fate of Italy will determine what kind of monetary union, and with which member-states, can survive The present confrontation between the Italian government and the European Commission over the size of Italy’s budget is another episode in a long-running drama about whether Italy’s membership of the euro is compatible with any viable monetary, fiscal, and political structure for the … Continue reading

30 November 2018 by
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Germany’s non-rebalancing of its mercantilist model

Contrary to recent claims that Germany has ‘quietly rebalanced’ its economy since the Eurozone crisis began, when German policy is viewed from a more long-term perspective, there has been little in the way of meaningful rebalancing In a recent LSE blog, Donato Di Carlo presents empirical evidence for what he considers a ‘quiet rebalancing’ of the German economy. Using 2010 as a … Continue reading

12 November 2018 by
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The ideological shifts, economics and geopolitics of the Italian elections

The agenda of Italy’s new anti-liberal, Eurosceptic and pro-Russian government could have significant ramifications far beyond Italy This post elucidates on the three key implications following the 2018 Italian general elections and the recent appointment of Italy’s new government: the consolidation of anti-liberal ideologies, the impact of a potential Italian exit from the euro on global financial stability, the geopolitical … Continue reading

12 June 2018 by
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TARGET2 imbalances and the stagnating political economy of Europe

A new approach is needed to respond to secular stagnation and imbalances in the Eurozone The Global Financial Crisis (GFC) of 2008 and succeeding sovereign debt crisis is still making its impact felt in Europe in sluggish growth and high unemployment, particularly in the periphery. Despite, apparently buoyant and benign growth in 2017 and the glittering figure 0.6% in the … Continue reading

8 February 2018 by
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Can the Eurozone resolve its macroeconomic imbalances before the next crisis?

The Macroeconomic Imbalance Procedure attempts to prevent future economic crises within the Eurozone by remedying emerging imbalances. Precisely how to achieve this, however, has opened a struggle for the very direction of European governance November kicked off the European Semester, the EU’s annual policy coordination cycle. With the EU economy gathering momentum, but with disparities in living standards among member … Continue reading

6 December 2017 by
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Diverging Capitalisms workshop 4: Inequality, Growth and Social Democratic futures in a dividing Europe

On Wednesday 11 October, many of the SPERI team gathered in Brussels to participate in a one-day workshop entitled ‘Inequality, Growth and Social Democratic futures in a dividing Europe’. They were joined by an esteemed assortment of policy-makers, political advisers, think tank colleagues and fellow scholars. The workshop, organised jointly by SPERI, Policy Network and the Foundation for European Progressive … Continue reading

13 October 2017 by
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Merkel 4.0: Chancellor Merkel’s marathon continues

Simon Bulmer

The election result has reduced Merkel’s authority and introduced new domestic constraints, just as space for new possibilities at the EU level are opening up Analysis of the German election held on Sunday 24th September has tended to focus on two features: the re-election of Chancellor Merkel alongside the new threat to German politics posed by the electoral success (with … Continue reading

28 September 2017 by
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Unfinished business: reforming the Economic and Monetary Union

Peter Verovsek

Europe’s citizens must put pressure on their leaders to reform the Eurozone – before the next crisis hits The crisis of the Eurozone, which began in 2010, was part of a global economic downturn. Its effects were felt across Europe but had the biggest impact among the member-states of the European Union (EU) that share the Euro.  This was due … Continue reading

3 July 2017 by
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The EU a year after the UK referendum: new momentum and optimism?

Simon Bulmer

With the EU issue in the UK far from settled, reports of the demise of the EU and the Eurozone have been greatly exaggerated It is now exactly 12 months since the British people voted to leave the European Union and this week Brexit negotiations finally started.  While Theresa May’s minority government seeks to sort out its negotiating strategy on … Continue reading

23 June 2017 by
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Will Frankfurt, Paris and Dublin replace the City of London after Brexit?

Scott Lavery

Alternative EU financial centres are unlikely to supplant the City as Europe’s premier financial hub – but private and public actors within these urban centres are already seeking to ‘capitalise’ on Brexit It is often claimed that alternative financial centres (AFCs) within the EU are well-placed to benefit from Brexit. However, no comprehensive analysis of the positioning of AFCs in … Continue reading

3 April 2017 by
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European sovereign bond-backed securities: a dangerous idea

The securitization of European government bonds is likely to increase hierarchies in the Eurozone. Eurobonds represent the most viable path to fiscal solidarity and political union Recently, European policymakers and representatives of financial institutions met in Paris at a workshop organised by the European Systemic Risk Board, the body which is responsible for the macroprudential oversight of the EU financial … Continue reading

10 January 2017 by
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2016 and the return of the nation-state

Whilst the turbulence of this year has caused political shocks the apparent resurgence of the nation-state should be no surprise Much of the political rhetoric that has been deployed during this period of political turbulence can make 2016 appear as the year the nation-state returned.  Yet for all the shock value associated with the year’s political events this apparent resurgence … Continue reading

21 December 2016 by
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The Coming Crisis: enduring imbalances in the Eurozone

Scott Lavery

In the third blog in SPERI’s new series on ‘the coming crisis’ Scott Lavery examines three areas of imbalance in the Eurozone and argues that the single currency area remains vulnerable to a future economic downturn Jean Monnet – one of the architects of the European integration process – once opined that “Europe will be forged in crises, and will … Continue reading

13 April 2016 by
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Lexit? Careful what you wish for…

Owen Parker

A number of voices on the British left have in recent months pushed the idea of ‘Lexit’ – a progressive position in favour of Britain leaving the EU. While their critique of the EU has merit, their solution is counterproductive In July 2015 Owen Jones suggested that the British left should seriously consider ‘Lexit’ – a progressive position in favour … Continue reading

12 April 2016 by
Categories: Economics, EU Referendum, Europe and the EU, SPERI Comment | Tags: , , , , , , , , | Leave a comment

The making of the modern ‘Debt State’

What we know (and don’t know) about ownership of public debt In a previous contribution to SPERI Comment, I presented some of my research on the domestic ownership structure of the US federal debt. The findings showed that since the early 1980s, and especially since the onset of the global financial crisis, federal bonds have become heavily concentrated in the … Continue reading

10 March 2016 by
Categories: Austerity, Debt, Economics, Inequality, SPERI Comment, Tax, USA | Tags: , , , , , , | 2 comments

Bad things can still happen to ‘good pupils’ in the Eurozone

Neil Dooley

Portugal’s aspirant ‘good behaviour’ has contributed not only to its recent political crisis, but also its longstanding economic woes Portugal’s political elites, such as Luís Marques Guedes, are often eager to let the world know that they are the hardworking ‘ants’ of Aesop’s fable, while ‘the Greeks are grass-hoppers’ who have failed to plan for the future.  In a thematically … Continue reading

9 December 2015 by
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Greece’s 3rd MoU: a one-way street?

Alexandros Kyriakidis

Syriza’s post-referendum agreement with the Troika stands as a ‘tombstone’ over potential alternatives to the Eurozone’s ordoliberal foundations The Eurozone crisis has brought about fundamental changes in the EU framework of governance. Overall, the founding ordoliberal model, often closely and correctly linked to the ideational hegemony of Germany, has been strengthened. Despite argumentation, by early 2015 all member-states had eventually … Continue reading

27 October 2015 by
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A clash of two projects: fundamental rights and the European Monetary Union

Robbie Pye

The EU could re-introduce fundamental rights into the governance of the Eurozone merely by holding to commitments it has already made Over the last five years the response to the Eurozone crisis has given rise to a framework of governance that has become increasingly hostile to domestic social standards.  Yet, in the decade prior to this, the EU went through … Continue reading

15 October 2015 by
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Variations in austerity-based reform

Tom Hastings

PIIGS and GIPSIs may appear to face common problems, but we should always respect the uniqueness of each country’s particular crisis For well-documented reasons the Greek political economy has received unprecedented attention in recent months, fuelled not least by the possibility of ‘Grexit’ and the potential impacts of this on both Greek society and the wider Eurozone. It is worth … Continue reading

26 August 2015 by
Categories: Austerity, Employment, Europe and the EU, SPERI Comment, Welfare | Tags: , , , , , , , , | Leave a comment

Vorsprung durch Technik?  Germany and the Eurozone crisis

Simon Bulmer

Key aspects of Germany’s approach to the Eurozone crisis are structural, but they still have a ‘dark side’ So, Greece managed to make its loan repayments (€750m to the IMF) on 11 May 2015. However, the road ahead remains arduous, with almost daily speculation about GREXIT.  Relations with Germany were never going to be easy, given their governments’ diametrically opposed … Continue reading

27 May 2015 by
Categories: Debt, Economics, Europe and the EU, Finance, Politics and policy, SPERI Comment | Tags: , , , , | Leave a comment

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