Esposito, M., (2013), “The systemic nature of the EU crisis: reflections on a deepening issue”, Euro Crisis in the Press Blog, London School of Economics, 02 January.
The Eurozone has entered its fourth year of crisis and 2013 has been a challenging year for a large number of Member States, who have been falling into severe debt, requesting bailouts tied to crippling austerity measures. If we thought the issue was namely a Greek syndrome, this year has proven otherwise.
Instead of providing some relief, the austerity measures are only making matters worse. Like dominoes, successive member states find themselves on a negative economic watch. Living conditions have deteriorated and unemployment rates have been skyrocketing. In the last four years, Europe has witnessed countless strikes and demonstrations, two hung parliaments, razor-sharp elections wreaking havoc with the stock market and the advent of capital controls on private finances. What began as a financial and banking crisis in 2008 has turned into a social crisis and a crisis of the European identity; probably the worse the European Union has ever experienced in its lifespan.
This clearly shows that the steps taken by European leaders to address the euro crisis have not worked; instead, they are putting the European Union itself in danger. Instead of addressing core systemic problems, the EU has been defending its policies both within and outside of its borders. A few months ago, an IMF staff report revealed the gross miscalculations made regarding to the contraction of Greece’s economy and the rise of unemployment. The Commission flatly rejected the IMF’s findings. The ECB faces trial for its bond markets program in Germany and no substantial progress has been made on a fiscal union.
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Relevant Posts
- Weeks, J., (2013), “A Eurozone Report Card 2013”, Social Europe Journal, 23 December.
- Tamborini, R., (2013), “Austerity and Growth: Dispelling Confusion with Some Facts”, EconoMonitor, 24 October.
- De Grauwe, P. and Ji, Y., (2013), “The Legacy of Austerity in the Eurozone”, Centre for European Policy Studies, 04 October.
- Wren-Lewis, S., (2013), “The ‘Official’ Cost Of Austerity”, Social Europe Journal, 29 October.
- Smaghi, L.B., (2013), “Austerity and Stupidity”, VoxEU, 06 November.