Edited by Martin Trybus and Luca Rubini
Chapter 4: The Pressures Inflicted by the Financial Crisis on the Euro Area: De Facto Creating an EU ‘Economic Government’ Despite the Status Quo Maintained in the Lisbon Treaty?
JOBNAME: Trybus and Rubini PAGE: 1 SESS: 6 OUTPUT: Tue Apr 24 15:08:21 2012 4. The pressures inﬂicted by the ﬁnancial crisis on the euro area: de facto creating an EU ‘economic government’ despite the status quo maintained in the Lisbon Treaty? Laura Puccio 1. INTRODUCTION The European Economic and Monetary Union (EMU) is representative of a multi-speed policy1 and asymmetric degrees of integration. Member States, having adopted the Euro, are indeed part of a monetary union; however, they have left competences for other economic policies at the national level, introducing only some coordination at the European level in order to ensure the effectiveness of the uniﬁed monetary policy. This division of competences has been codiﬁed within the new Lisbon Treaty, keeping the EMU’s original balance between soft law instruments and hard-core ﬁscal rules and the same division of power between Commission and Council. The ﬁnancial crisis, the general rise of public debt, the increasingly diverging competitiveness ratios in the euro area, and the following sovereign debt crisis in Greece with its spillover effects – ﬁrst on Ireland, Portugal, and later Spain and Italy – revealed the fallacies and incompleteness of European economic governance. The inevitable violation of the no-bail-out clauses to save the Euro from collapsing questioned both the ability of Euro countries in coping with asymmetric crises through their 1 Different obligations and statuses of Member States within the EMU: countries participating in the Euro, countries with derogations (like the UK or Denmark), Sweden, and...
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