The Euro Crisis and the Unavoidable Challenge. A Political Compact as the Main Economic Solution

Nel mio ultimo paper mi sono concentrato su questioni europee, che ho voluto affrontare con un approccio combinato, economico e socio-politico.

Riprendendo James Madison e Tommaso Padoa Schioppa, l’Unione Europea potrebbe vincere la sfida che non può più rimandare: capire cosa vuole fare da grande e come. La crisi, o megio le crisi degli ultimi 7 anni hanno riportato in auge la stretta connessione che esiste tra economia e politica. Non la connessione banale del malaffare raccontata dai media, ma quella più profonda e complessa dovuta alla natura affascinante di scienze sociali.

Di seguito abstract e introduzione, qui è possibile scaricare il paper completo.



Abstract
The aim of this work is to explain the Euro crisis either
from an economic or from a political approach. The will is to underline what
emerged during the several crises that affected the European Union and in
particular the Eurozone. From the financial crisis, started in the United
States in 2007, Europe has also been affected by a sovereign debt crisis and
from a deep lack of legitimacy. All these events have shown how big and how
limited is this complex system, which still now does not have any similar
examples around the world. The various European issues brought to the surface,
during the last seven years, forced “Economics professionals” and “Politics
professionals”, always separately in the respective fields, to deal with the
problem of a precise moment and to adopt a temporary solution. This paper would
contribute to create and to develop the idea that now, mainly “thanks” to the
Euro crisis lato sensu, both
economics and politics must act to find and to introduce measures which are
part of a complete system, already thought and clear ex ante, immediately. It is time to rebuild the European Union and
this essay suggests a clear political compact. However, every possible proposal
has only one way to achieve it: Economics and Politics working together.

 

Keywords: Economic Integration, Euro Crisis, European Political
Parties, European Monetary Union, Fiscal Policy, Political Compact. Treaty
Reform
 
 
Introduction
This essay analyses the existing links between
economic and political issues which have originated from the European
institutional system and that are worsened by the crisis. I examine the
European model dealing with the economic and the political side to underline
the causes and the effects of the various crises which affected the EU and the
Eurozone. My approach is based on the combined use of concepts such economic integration together with
another such as compound democracy to
delineate a new European institutional system.
          I will
proceed as follows: first I am going to describe the European Union and the
European Monetary Union in the recent years, and I will focus on the open
questions of the institutional building (first section), then I am going to try
to explain why and how the Euro crisis, broadly considered, should force
Economics and Politics to talk to each other to tackle the European issues
(second section). I will discuss Europe as the federal state union where the
main economic cleavages would show a need of political solutions (third
section).
          I will
arrive to the general conclusion that, an approach to the union formed by both
economic and political standpoints, does not only explain the cleavages of the
EU, but it is also the only way to try to resolve them. Finally, I am going to explain
the reason why I consider a political compact the most beautiful challenge
anymore avoidable, above all, from an economic point of view.

 

 

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