Systemic Crisis of Euro-zone: Economics vs Politics

357
DOI: 10.20542/0131-2227-2012-11-43-49

V. Varnavskii, Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO RAN), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation (varnavsky@imemo.ru).

Abstract. The main problem of the Euro-zone is not even the financial crisis combusted and not sovereign debts, but the absence of viable ideas how to preserve the institutional structure, managerial system and separation of powers between Brussels and national governments, which are designed in the Maastricht Treaty. No personalities are seen on the EU political landscape who could offer a realistic way of the crisis recovery, without economic and social shocks. European society, including its educated part, the elites, doesn't believe either in modern leaders, or in tools of crisis recovery suggested by them. It was illustrated dramatically by presidential and parliamentary elections in France, regional elections in Germany. The financial and institutional reforms, worked out poorly and half-estimated, may be continued, but only as long as the economy stands political experiments on itself. Obviously, there is only one real alternative – whether a collapse of the Euro-zone, or a radical, tangible integration, working out and  adoption of a Roadmap for some EU-countries' movement towards the United States of Europe creation on the space of viable, effective, competitive national economies, ready to sacrifice their sovereignty.

Keywords: European Union, EMU, Euro-zone, Euro, economic growth, competiveness, fiscal policy, Fiscal compact


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For citation:
Varnavskii V. Systemic Crisis of Euro-zone: Economics vs Politics. World Eonomy and International Relations, 2012, no. 11, pp. 43-49. https://doi.org/10.20542/0131-2227-2012-11-43-49



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