Deposit Guarentee Scheme, Directive, De Nederlandsche Bank, European Commission, The European Central Bank, Policy Learning, Single-Case Study, Process Tracing
This paper investigates the causes behind the continual suspension of the European Union’s (EU) Stability and Growth Pact (SGP) under its general escape clause (GEC) throughout the period of 2020...Show moreThis paper investigates the causes behind the continual suspension of the European Union’s (EU) Stability and Growth Pact (SGP) under its general escape clause (GEC) throughout the period of 2020-2023. The GEC was triggered in March of 2020 on the recommendation of the European Commission to give member states fiscal room to cope with the COVID-19 pandemic, but has remained in place for over three years, despite the subsiding of pandemic emergency measures, restored levels of economic activity, and the repeated recommendations and predictions from numerous European institutions that the rules were to be reinstated at the end of 2022 by the very latest. With the emergence of a legislative proposal from the European Commission to reform the SGP’s rules, questions have emerged from journalistic endeavours and academic literature as to the purpose of the extended suspension. This paper utilises explaining-outcome process-tracing as described by Beach and Pedersen (2013) to compare the expectations and assumptions of varying theories, particularly the “failing forward” theory of Jones et al., (2016) to investigate and explain the European Commission’s decision-making in the case of the SGP’s continual suspension. It concludes that the continual suspension can be minimally explained by ongoing reform efforts by the European Commission, in line with the theoretical expectations of Jones et al. and the findings of Schön-Quinlan and Sciponi (2017). It cannot rule out that the escalation of the Russo-Ukrainian War, and the economic knock-on effects, played a part in the decision for continual suspension. The findings of this paper have implications for understanding the European Commission as a fiscal actor in an economic crisis, and understanding the relevance of particular theories of European integration to the historical context of the COVID-19 pandemic.Show less
Liz Truss and Kwasi Kwarteng’s 2022 Growth Plan sent the markets into meltdown, the ramifications of which are still felt almost a year on. Using process tracing, this paper seeks to explain the...Show moreLiz Truss and Kwasi Kwarteng’s 2022 Growth Plan sent the markets into meltdown, the ramifications of which are still felt almost a year on. Using process tracing, this paper seeks to explain the policy choices of the Growth Plan by adopting a discursive institutionalist approach. First, this paper investigates the influence of ideas held by the two key decision-makers, Truss and Kwarteng, and finds that ideas they held for over a decade significantly influenced many of the Growth Plan’s policies. Secondly, this paper explores the influence of ideas furthered by right- leaning think tanks on the policies of the Growth Plan. The results indicate that, while there are limitations to think tank influence, it is likely that the ideas of right-leaning think tanks played a significant role in shaping the policies of the Growth Plan. Causal mechanisms lie at the heart of this paper, responding to calls for a greater emphasis on the causal mechanisms linking ideas to policy outcomes (Campbell, 2002; Jacobs, 2009). Therefore, the results contribute to the body of literature investigating the explanations for economic policymaking and seeks to provide new findings for the literature which is engaged in a fractious debate about the role of think tanks in policymaking.Show less
This thesis investigates the developments between the birth of Bitcoin (2008) and the launch of the digital euro project (2021), in order to formulate an answer to the question of why the European...Show moreThis thesis investigates the developments between the birth of Bitcoin (2008) and the launch of the digital euro project (2021), in order to formulate an answer to the question of why the European Central Bank decided to investigate the possibility of a digital euro in July of 2021. The data is collected from both primary and secondary sources, and the method of process tracing has revealed that the conjunction of three events at the end of 2020 have steered the European Central Bank towards this path. The declining use of cash in the euro area, increasing interest in cryptocurrencies among European citizens and businesses, and the growing interest of global central banks in central bank digital currencies, have presented the European Central Bank with four new challenges, respectively: monetary sovereignty and authority, financial instability, the international role of the euro, and political independence. To tackle these challenges that have heightened at the end of 2020, the European Central Bank has decided to start looking into the possibility of a digital euro.Show less
Economic Governance in EU has been significantly impacted by the COVID-19 pandemic, and with the suspension of the Stability and Growth Pact (SGP), window for reforms have become visible. To...Show moreEconomic Governance in EU has been significantly impacted by the COVID-19 pandemic, and with the suspension of the Stability and Growth Pact (SGP), window for reforms have become visible. To understand the implications of the proposed reforms by the EU Economic Governance Review, we conduct a case-study analysis of both COVID-19 Pandemic and the European Debt Crisis of 2009 to understand how efficient these proposed SGP reforms could be. The case-study analysis compares the public expenditures of member states to derive the efficiency of the Excessive Deficit procedure (EDP) under SGP. The author is able to derive limitations pertaining to policy failure in the analysis. Overall, even though the study might identify the subjective relevance of EDP amongst the member states, the procyclical impact of the reforms suggest further discourse in the field.Show less
