IDEAS home Printed from https://ideas.repec.org/a/ora/journl/v1y2017i1p713-722.html
   My bibliography  Save this article

Transforming A Trilemma Into A Dilemma. A Political Economic Approach To The Recent Crises In Europe

Author

Listed:
  • Gabor Vigvari

    (Corvinus University of Budapest)

Abstract

The European Union with its sophisticated institutional system is the most important regional integration on Earth. This tight form of economic integration converges to the level that Dani Rodrik calls hyper globalization in his model, the political trilemma of globalisation. In this model Rodrik assumes that from the three desired element of world politics: deep economic integration, the nation state, and democratic politics only two can be chosen. We can either choose deep integration and the nation state but then we have to abandon democracy; or we can choose deep integration and democracy, but then we have to forfeit the nation state; or we have to circumscribe globalisation to maintain democracy and the nation state. This paper argues, that this trilemma is applicable to the European Union, although with some modification. In our essay we will reduce this trilemma into a dilemma based on the integration theories of neofunctionalism and intergovernmentalism. The recent two crises that hit the European Project, the financial crisis and near collapse of the Eurozone, and the refugee crisis both represent this dilemma. The monetary union and the common labour market, with the Schengen Agreement created an integrated economic area, while in the same time political governing institutions have remained weak that could not respond well enough in times of external pressure. The argument is, that the EU is ‘over integrated’ from an economic perspective, and cannot function properly without a matching level of political integration. This can be achieved either using the neofunctionalist approach and the path of Europeanisation, or using the intergovernmentalista approach. Our main conclusion is that based on events of the last 8 years, it is more likely, and that the intergovernmentalista approach is going to be used. However, this scenario has many possible negative outcomes, out of which the most likely is a multispeed Europe.

Suggested Citation

  • Gabor Vigvari, 2017. "Transforming A Trilemma Into A Dilemma. A Political Economic Approach To The Recent Crises In Europe," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 713-722, July.
  • Handle: RePEc:ora:journl:v:1:y:2017:i:1:p:713-722
    as

    Download full text from publisher

    File URL: http://anale.steconomiceuoradea.ro/volume/2017/n1/71.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rodrik, Dani, 2002. "Feasible Globalizations," CEPR Discussion Papers 3524, C.E.P.R. Discussion Papers.
    2. Krasner, Stephen D., 1982. "Structural causes and regime consequences: regimes as intervening variables," International Organization, Cambridge University Press, vol. 36(2), pages 185-205, April.
    3. Moravcsik, Andrew, 1991. "Negotiating the Single European Act: national interests and conventional statecraft in the European Community," International Organization, Cambridge University Press, vol. 45(1), pages 19-56, January.
    4. Wyplosz, Charles, 2005. "Fiscal Policy: Institutions versus Rules," National Institute Economic Review, National Institute of Economic and Social Research, vol. 191, pages 64-78, January.
    5. Sandra Lavenex, 2001. "The Europeanization of Refugee Policies: Normative Challenges and Institutional Legacies," Journal of Common Market Studies, Wiley Blackwell, vol. 39(5), pages 851-874, December.
    6. Charles Wyplosz, 2005. "Fiscal Policy: Institutions versus Rules," National Institute Economic Review, National Institute of Economic and Social Research, vol. 191(1), pages 64-78, January.
    7. Putnam, Robert D., 1988. "Diplomacy and domestic politics: the logic of two-level games," International Organization, Cambridge University Press, vol. 42(3), pages 427-460, July.
    8. Arne Niemann, 2006. "Explaining visa, asylum and immigration policy Treaty revision: insights from a revised neofunctionalist framework," The Constitutionalism Web-Papers p0005, University of Hamburg, Faculty for Economics and Social Sciences, Department of Social Sciences, Institute of Political Science.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tatiana Kirsanova & Stephanus le Roux, 2013. "Commitment vs. Discretion in the UK: An Empirical Investigation of the Monetary and Fiscal Policy Regime," International Journal of Central Banking, International Journal of Central Banking, vol. 9(4), pages 99-152, December.
    2. Asatryan, Zareh & Castellón, César & Stratmann, Thomas, 2018. "Balanced budget rules and fiscal outcomes: Evidence from historical constitutions," Journal of Public Economics, Elsevier, vol. 167(C), pages 105-119.
    3. Calmfors, Lars, 2015. "The Roles of Fiscal Rules, Fiscal Councils and Fiscal Union in EU Integration," Working Paper Series 1076, Research Institute of Industrial Economics.
    4. Benedetta Bianchi, 2016. "Sovereign Risk Premia and the International Balance Sheet: Lessons from the European Crisis," Open Economies Review, Springer, vol. 27(3), pages 471-493, July.
    5. Mr. Xavier Debrun & Mr. Manmohan S. Kumar, 2007. "The Discipline-Enhancing Role of Fiscal Institutions: Theory and Empirical Evidence," IMF Working Papers 2007/171, International Monetary Fund.
    6. Frankel, Jeffrey A. & Schreger, Jesse, 2012. "Over-Optimistic Official Forecasts in the Eurozone and Fiscal Rules," Working Paper Series rwp12-041, Harvard University, John F. Kennedy School of Government.
    7. Jeffrey Frankel, 2013. "A Solution to Fiscal Procyclicality: The Structural Budget Institutions Pioneered by Chile," Central Banking, Analysis, and Economic Policies Book Series, in: Luis Felipe Céspedes & Jordi Galí (ed.),Fiscal Policy and Macroeconomic Performance, edition 1, volume 17, chapter 9, pages 323-391, Central Bank of Chile.
    8. Ovalle, Raul & Ramírez, Francisco A., 2014. "Reglas versus Discreción en la Política Fiscal: Introducción al caso Dominicano [Rules vs Discretion in Fiscal Policy: An Introduction to the Case of the Dominican Republic]," MPRA Paper 68332, University Library of Munich, Germany.
    9. Margit Molnár, 2012. "Fiscal consolidation: What factors determine the success of consolidation efforts?," OECD Journal: Economic Studies, OECD Publishing, vol. 2012(1), pages 123-149.
    10. Robert Hagemann, 2011. "How Can Fiscal Councils Strengthen Fiscal Performance?," OECD Journal: Economic Studies, OECD Publishing, vol. 2011(1), pages 1-24.
    11. Arie Krampf, 2012. "The Consolidation of the Anglo-Saxon/European Consensus on Price Stability - From International Coordination to a Rule-Based Monetary Regime," KFG Working Papers p0047, Free University Berlin.
    12. Robert P. Hagemann, 2010. "Improving Fiscal Performance Through Fiscal Councils," OECD Economics Department Working Papers 829, OECD Publishing.
    13. Margit Molnar, 2012. "Fiscal Consolidation: Part 5. What Factors Determine the Success of Consolidation Efforts?," OECD Economics Department Working Papers 936, OECD Publishing.
    14. Debrun, Xavier & Gerard, Marc & Harris, Jason, 2016. "Fiscal Watchdogs and Sound Fiscal Policy: Is the Barking Loud Enough to Tame Politicians?," MPRA Paper 96683, University Library of Munich, Germany, revised 2019.
    15. Beetsma, Roel M.W.J. & Debrun, Xavier, 2007. "The new stability and growth pact: A first assessment," European Economic Review, Elsevier, vol. 51(2), pages 453-477, February.
    16. Beyers, Jan, 1998. "Where does supranationalism come from? Ideas floating through the working groups of the Council of the European Union," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 2, November.
    17. Rui Henrique Alves & Oscar Afonso, 2008. "Evaluating the reform of the stability and growth pact: new and better?," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 67(01), pages 392-409.
    18. Adam Geršl & Martina Jašová & Jan Zápal, 2014. "Fiscal Councils and Economic Volatility," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(3), pages 190-212, June.
    19. Eichengreen, Barry, 2015. "How the euro crisis ends: Not with a bang but a whimper," Journal of Policy Modeling, Elsevier, vol. 37(3), pages 415-422.
    20. Ludema, Rodney D. & Olofsgard, Anders, 2008. "Delegation versus communication in the organization of government," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 213-235, February.

    More about this item

    Keywords

    crisis; Economic and Monetary Union; European Union; intergoverenmentalism; neofunctionalism; Schengen Agreement;
    All these keywords.

    JEL classification:

    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2017:i:1:p:713-722. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catalin ZMOLE (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.