Within three years since its introduction in 1999, the euro has developed into the second most important global reserve currency. This thesis is aimed at explaining mechanisms that contributed to...Show moreWithin three years since its introduction in 1999, the euro has developed into the second most important global reserve currency. This thesis is aimed at explaining mechanisms that contributed to the euro’s international position. The international role of the euro before and after the eurozone debt crisis will be compared, in order to explain why the euro maintained its position subsequent to this crisis. In addition, this thesis will highlight the importance of the Economic and Monetary Union due to its relation to the development of the international role of the euro. A stronger international role can be achieved by strengthening the Economic and Monetary Union, and in turn a more enhanced monetary union acts as a shield against possible financial crises. By using the new institutionalist theory of historical institutionalism along with the method of process-tracing, it is anticipated to determine critical events and to develop a process of causal mechanisms that can explain why the euro happened to maintain its international position after enduring one of the most critical economic and financial setbacks in the history of the eurozone.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
The explanatory and predictive power of theoretical analysis has played a fundamental role in shaping European monetary integration. The ambition to integrate into a solidified and sustainable...Show moreThe explanatory and predictive power of theoretical analysis has played a fundamental role in shaping European monetary integration. The ambition to integrate into a solidified and sustainable monetary union has often been evaluated against a framework of economic convergence and creation of an effective supranational institution. However, the turn of events over the last decade has changed the perception about monetary integration in Europe. The Eurozone crisis, one of the biggest crises encountered in Europe, forced European Union’s institutions to take measures that could overcome the crisis and simultaneously facilitate integration. The need to understand the narrative that drove monetary integration during the Eurozone crisis has become significantly important due to its widespread impact and lasting repercussions. In analysing such consequential events, the purpose of this research is to compare and contrast the ambitions of European Monetary Union to the realities that drive monetary integration within Europe. This study will undertake the critical analysis of two crisis management responses adopted to tackle the Eurozone crisis, namely the Stability and Growth Pact and the European Stability Mechanism. Utilising these responses, this research attempts to construct the theory of Liberal Intergovernmentalism and understand the general pattern that drove monetary integration in Europe since the Eurozone crisis.Show less
This thesis examines the crisis policies of the ‘troika’ institutions to Greece in the context of the Eurozone crisis. The neoliberal policies of fiscal austerity and internal devaluation...Show moreThis thesis examines the crisis policies of the ‘troika’ institutions to Greece in the context of the Eurozone crisis. The neoliberal policies of fiscal austerity and internal devaluation prescribed by the troika had a strong contractionary impact which resulted in a prolonged recession of the Greek economy. For this reason, the research question of this study is to what extent the IMF, the EC and the ECB have been questioning the appropriateness of the prescribed crisis policies to Greece. Building on neo-Gramscian theory, the causal mechanism claims that the hegemony of neoliberalism within the troika institutions conditions a specific diagnosis of the Eurozone crisis and hence a specific set of policy responses. Analysing the positions on central dimensions of neoliberalism with regard to financial crises, a striking persistence of neoliberal policies is observed. In light of neo-Gramscian theory, this observation suggests that the first grand systemic crisis of the 21st century has not seen the rise of a challenging counter-hegemonic ideology. It also suggests that the transmittance of ideological change from global to regional economic governance is not necessarily instant. It is thus fundamental to advocate strong alternatives to neoliberalism which could bring the long reign of neoliberalism and international finance to an end.Show less
