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Europe’s new deal: a new version of an expiring deal

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  • George Gerapetritis

Abstract

The article elaborates upon the reasons of institutional default (Part 1) and, in turn, upon the implications of economic default in Europe (Part 2). In relation to the reasons of institutional default, the paper cast light on three broadly interrelating elements: First, the conceptual issue that the EU has been operating as a community without democracy, which was clearly illustrated in the case of the economic crisis (Sect. 2.1). Second, the structural issue that EU democracy, where applicable, was deprived of politics, in the sense that founding ideology has been completely superseded by the inflexible dominance of free market (Sect. 2.2). And, third, the technical issue that EU politics, where applicable, especially after the Euro-zone launching, lacked principles that could keep the community intact (Sect. 2.3). In relation to the implications of economic default, the paper reveals three salient features. First, the political impact, namely that Europe seems to be puzzled by a sharp division between stability/cohesion and growth/monetarism, which mutates the essential mainstays of a Community (Sect. 3.1). Second, the social impact, i.e. increase of discrepancies within the EU, mostly as a result of diminution of labour rights and the correlating destruction of cohesion (Sect. 3.2). And, third, the psychological impact, which revolves around two antithetical poles, namely stereotyping and nationalism (Sect. 3.3). The epilogue reflects the view that the current depression is both a disaster and an opportunity for Europe, therefore the old messianic deal of the European integration needs an afresh look within the frame of democratic legitimacy and accountability and with an essential preservation of social state. Copyright The Author(s) 2014

Suggested Citation

  • George Gerapetritis, 2014. "Europe’s new deal: a new version of an expiring deal," European Journal of Law and Economics, Springer, vol. 38(1), pages 91-115, August.
    • Handle: RePEc:kap:ejlwec:v:38:y:2014:i:1:p:91-115
    DOI: 10.1007/s10657-013-9422-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Europe; Crisis; New deal; Economy; Society; Democracy; F02; G01; H12; K00;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • G01 - Financial Economics - - General - - - Financial Crises
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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