The Eurozone Crisis

Understanding the Political Economy of the Eurozone Crisis

The Eurozone crisis constitutes a grave challenge to European integration. This article presents an overview of the causes of the crisis and analyzes why has it been so difficult to resolve. We focus on how responses to the crisis were shaped by distributive conflicts both among and within countries. On the international level, debtor and creditor countries have fought over the distribution of ...

The Eurozone Crisis: Psychological Mechanisms Undermining and Supporting European Solidarity

Europe has become a vivid example of intergroup dynamics with all the risks and chances it holds for peaceful and respectful co-existence. While Europe as a superordinate social category has the capability of solidarity between its subcategories (i.e., nations), negative emotions and behaviors among the countries’ citizens have become more prevalent throughout the emerging crisis. This article ...

Policy learning in the Eurozone crisis: modes, power and functionality

In response to the attacks on the sovereign debt of some Eurozone countries, European Union (EU) leaders have created a set of preventive and corrective policy instruments to coordinate macro-economic policies and reforms. In this article, we deal with the European Semester, a cycle of information exchange, monitoring and surveillance. Countries that deviate from the targets are subjected to in...

Internal Rating Based Model, Bank Regulatory Arbitrage and Eurozone Crisis

I investigate how the complicated model-based capital regulation can be misused by European banks for capital saving purposes. I find that relative to banks from core countries, banks from peripheral countries (1) can greatly reduce the risk-weight associated with their assets by applying more internal rating-based (IRB) approach, and (2) the default frequency of their assets is not reflected i...

Beyond Immaturity and Victimisation: The European Periphery and the Eurozone Crisis