The Political and Policy Consequences of the Eurozone Crisis

This is a presentation I delivered at a workshop at the EUI on ‘Exiting the Eurozone Crisis’. The core argument is that the internal devaluation being imposed on ‘GIPSI’ countries (Greece, Ireland, Portugal, Spain and Italy) is not working, and the democratic state in Europe is facing a serious legitimation crisis. The distributional implications are leading to social upheaval.  A one size fits all solution of ‘supply side’ structural reforms perpetuates the fundamental mistake of the EMU – the myth of market convergence among 17 diverse political economies.

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