European Institution Response to Crisis in Euro Zone: How does it affect the Europeanization Integration of the EU?

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ABSTRACT

In this research study, the purpose is to find out about managing the neoliberal crises in the euro zone and institutional responses at national and regional levels. The euro zone crisis started in Greece and it turned into the euro zone crisis. The causes of this crisis are financial market, Greece and the euro zone authorities. In this study the case studies of Greece and Ireland will be used This study provides the reason of euro zone crisis and the study helps in understanding eth role of the European institution and their response to the euro zone crisis. The study is also give information about euro crisis in Greece and Ireland and their institutional responses to the euro zone crisis.

TABLE OF CONTENTS

ABSTRACTii

LIST OF ABBREVIATIONSiv

LIST OF FIGURESv

CHAPTER 1: INTRODUCTION1

Background of the study1

Literature analysis5

VofC (Variaties of Capitalism Theory)5

Europeanization Theory7

New Institutionalism Theory9

Neoliberalism theory10

Research methodology12

Problem statement12

Research design12

Case study Greece13

Case study Ireland euro crisis15

Research Aims and Objectives16

Research Aim16

Research objectives16

Research Questions17

Significance of the study17

Layout of the study17

END NOTES19

LIST OF ABBREVIATIONS

EU: European union

ECB: european central bank

EMU: European monetary union

PIGS: Portugal, Ireland, Greece and spain

VofC: Variaties of Capitalism Theory

LIST OF FIGURES

Figure 1: Current Account Balance % GDP (PIGS Countries) Economic Risks and Rewards of Monetary Union

CHAPTER 1: INTRODUCTION

Background of the study

In the european countries, the euro crisis was started and the main cause of this crisis is collapse in the financial markets and euro zone authorities. Although there is currently a debate regarding to the extension of the crisis as whether it has discursively been created or not, there are on-going discussions as well focusing on institutional responses to this critical situation, either through the European Union institutions, mainly the European Central Bank, inter-state bargaining, and key states coordinated policy responses within the Euro zone, or individual national economic policies in the context of crisis. At the core of these discussions is the attempt to explore the impacts of neoliberalism in the economic and political fields, the reformulation of political coalitions around reforms to address economic management in the context of crisis, and possible new forms of governance at the supranational and national levels.

As such, the proposed research aims to address this very topical theme: the politics of economic management in key European countries within the context of the crisis of neoliberalism and global market integration. According to the researcher, the rise in housing prices created rising wages, which made real estate more affordable. As a result of higher labor costs, exports became more expensive, which fed into large current account deficits in Spain and Ireland. When the European sovereign debt crisis started to develop in late 2009, four euro area countries became the symbols of Europe's fiscal mismanagement: Portugal, Ireland, Greece and Spain. Greece was the only Member State that spent recklessly and actively distorted and suppressed important macroeconomic data in the years leading up to the financial crisis. During the years proceeding the global recession, ...