Lessons of the crisis for the economic governance of Europe

Authors

  • José Fernández-Albertos

Keywords:

Eurozone, crisis, European Union, economic policy, European integration, global governance, economic integration

Abstract

This article proposes a new look at the evolution of the macroeconomic management of the Eurozone crisis in the light of Rodrik’s global governance trilemma. According to this “trilemma”, full economic integration, national sovereignty, and democratic decision-making cannot be made simultaneously compatible. The article shows how the successive policy paradigms used in Europe to address the crisis (stimulus, adjustment, and integration) can be interpreted as different “combinations” within the constraints imposed by the trilemma. The final section speculates about how this discussion can be used to analyze the political viability of possible future scenarios in the Eurozone.

Issue

Section

ARTICLES