Abstract
The financial crisis in the Eurozone is combining several new interdisciplinary debates. Has the financial crisis been caused by the decisions of the political actors or rather by complicated economic dilemmas? In what way have different social stakeholders acted during the years of the crisis and which of the groups have had the biggest influence in different stages of the crisis? Why and how national political elites have lost their dominant position in the crisis management, which have been the cornerstones of this power transition process and what role have the supranational institutions such as the European Commission and the European Central Bank played during the crisis? Accordingly, the main goal of the article is to define the crucial events and stakeholders in the Eurozone crisis solution process by using empirical process tracing and narrative analysis as the research methods. It will also inquire into how and why national political elites and citizens delegated their democratic competences and powers to non-electable institutions during the Eurozone crisis.
Highlights
The European Union’s political, economic and academic elites during the last four years have been looking for a solution which would provide stabilization, security, and sustainability to the Euro and the Eurozone
The solutions, at least the temporary ones, have been found even in cases when they were beyond the European Unions legislative framework or by asking additional delegation of power to the European Union institutions from the member states
The research issues of this study are focused on the current Eurozone financial crisis and discuss the choices that available for decision makers, the stakeholder groups that have influenced the actual policy outcome, the ways the balance-of-power has been changing during the crisis management, and how the supranational institutions such as the European Central Bank have participated in the process
Summary
The European Union’s political, economic and academic elites during the last four years have been looking for a solution which would provide stabilization, security, and sustainability to the Euro and the Eurozone. From the economic point of view, there is a possibility that the Euro as a single currency will not meet the economic needs of all the Eurozone member states or is, in itself a cause of the debt crisis and dropping economic productivity (debated in Eichengreen 2009; Bernanke 2005; Alexiou and Nellis 2012; Notermans 2012) Consumer economies can keep consuming as long as foreign investors want to lend their capital to consumer economies at the offered interest rates Market feedback in this situation would be restricted by the single currency (see Figure 3), and market reactions are reflecting the actual performance of a member state, and the stabilizing effect of the Eurozone (including possible supportive bond purchases and bail-outs, if needed). Why and how supranational institutions became central stakeholders in the Eurozone debt crisis... 55 Euro area and EU-27 unemployment rate
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