The Sources of the Crisis in Europe

Abstract

This chapter examines the sources of Europe’s crisis — a crisis not only of capitalism and social democracy but of politics and society. The crisis appears to require shifting sovereignty in governance yet without public legitimacy. The growing gap between executive decision-making and democratic participation raises concerns about whether European policymakers and publics can effect change. With few avenues to express dissatisfaction, voters are protesting the apparently permanent austerity demanded by the EU. They are concerned about the lack of equitable economic redistribution and the inequality this generates. The crisis is an economic crisis, an identity crisis, and a crisis of shortfalls of power. The mishmash of competences and policy failure entrenches perceptions of limited capacity for effective action at the core of the EU’s economic survival. The EU’s unique governance settings are now seen in terms of deficit.