Systemic Crisis of Euro-zone: Economics vs Politics

348
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


Registered in System SCIENCE INDEX

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



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Current Issue
2022, vol. 66, No. 6
Topical Themes of the Issue:
  •  China on the Eve of the 20th CPC Congress 
  •  2020 Elections: “Stress Test” for American Federalism 
  •  The Chancellor O. Scholz’s Policy in the Context of Global Transformation 
  •  The EU China Policy in the Making: The Role of Central and Eastern Europe 
  •  Pan-European Political Space: From Idea to Reality
View This Issue (2022, vol. 66, No. 6)
Submit an Article
NEW SECTION

In response to the challenges of our time the Editorial board continues to open new thematic rubrics:

“World Energy Sector after Pandemic”. We plan to publish articles presenting in-depth analysis of influence of Pandemic on the global energy sector and forecasts of further developments in its various branches.