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A fragile and divided European Union meets Covid-19: further disintegration or ‘Hamiltonian moment’?

Author

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  • Giuseppe Celi

    (University of Foggia)

  • Dario Guarascio

    (Sapienza University of Rome)

  • Annamaria Simonazzi

    (Sapienza University of Rome)

Abstract

Despite being symmetric in its very nature, the Covid-19 shock is affecting European economies in a very asymmetric way, threatening to deepen the divide between core and peripheral countries even more. It is not Covid-19 itself, however, but the contradictions within the EU’s growth model and institutional architecture that would be to blame for such an outcome. The dramatic impact of the economic crisis brought on by the pandemic and the threat that it poses to Eurozone survival seem to have forced a reluctant Germany into action: a minor step, but an important signal. This note analyses the crossroads currently facing Europe—the risk of disintegration vis-a-vis the opportunity for a ‘Hamiltonian moment’—discussing possible future scenarios in the light of past developments.

Suggested Citation

  • Giuseppe Celi & Dario Guarascio & Annamaria Simonazzi, 2020. "A fragile and divided European Union meets Covid-19: further disintegration or ‘Hamiltonian moment’?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 411-424, September.
    • Handle: RePEc:spr:epolin:v:47:y:2020:i:3:d:10.1007_s40812-020-00165-8
    DOI: 10.1007/s40812-020-00165-8
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    References listed on IDEAS

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    Cited by:

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    2. Caravella, Serenella & Crespi, Francesco & Cucignatto, Giacomo & Guarascio, Dario, 2023. "Technological Sovereignty and Strategic Dependencies: The case of the Photovoltaic Supply Chain," GLO Discussion Paper Series 1330, Global Labor Organization (GLO).
    3. Juan Carlos Martín & Concepción Román, 2021. "COVID-19 Is Examining the EU and the Member States: The Role of Attitudes and Sociodemographic Factors on Citizens’ Support towards National Policies," Social Sciences, MDPI, vol. 10(2), pages 1-27, January.
    4. Lorenzo Cresti & Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2023. "Italy and the Trap of GVC Downgrading: Labour Dependence in the European Geography of Production," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(3), pages 869-906, November.
    5. Philippe Pochet, 2022. "From one crisis to another: changes in the governance of the Economic and Monetary Union (EMU)," Transfer: European Review of Labour and Research, , vol. 28(1), pages 119-133, February.
    6. Davide Villani & Marta Fana, 2021. "Productive integration, economic recession and employment in Europe: an assessment based on vertically integrated sectors," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 137-157, June.
    7. Giuseppe Celi & Dario Guarascio & Jelena Reljic & Annamaria Simonazzi & Francesco Zezza, 2022. "The Asymmetric Impact of War: Resilience, Vulnerability and Implications for EU Policy," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(3), pages 141-147, May.
    8. Michael A. Landesmann, 2020. "Covid-19 crisis: centrifugal vs. centripetal forces in the EU—a political-economic analysis," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 439-453, September.
    9. Andrea Coveri & Claudio Cozza & Leopoldo Nascia & Antonello Zanfei, 2020. "Supply chain contagion and the role of industrial policy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 467-482, September.
    10. G. Dosi & L. Fanti & M. E. Virgillito, 2020. "Unequal societies in usual times, unjust societies in pandemic ones," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 371-389, September.
    11. Bart Vanhercke & Amy Verdun, 2022. "The European Semester as Goldilocks: Macroeconomic Policy Coordination and the Recovery and Resilience Facility," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 204-223, January.
    12. Nikolaos Stoupos & Apostolos Kiohos, 2022. "Euro Area: Towards a European Common Bond? – Empirical Evidence from the Sovereign Debt Markets," Journal of Common Market Studies, Wiley Blackwell, vol. 60(4), pages 1019-1046, July.
    13. Dario Guarascio & Jelena Reljic & Giacomo Cucignatto & Giuseppe Celi & Annamaria Simonazzi, 2023. "Between a rock and a hard place. Long-term drivers of EU structural vulnerability," Working Papers in Public Economics 237, University of Rome La Sapienza, Department of Economics and Law.
    14. Vytautas Kuokštis & Ringailė Kuokštytė, 2023. "How Institutions Moderated the Pandemic's Economic Impact in EU Member States," Journal of Common Market Studies, Wiley Blackwell, vol. 61(2), pages 503-525, March.

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    More about this item

    Keywords

    Core-periphery relations; Euro crisis; EMU; Global value chains;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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