The Global Financial Crisis and the Crisis of European Neoliberalism

Alan W. Cafruny

Chapter 6 in The Global Crash, 2010, pp 121-139 from Palgrave Macmillan

Abstract: Abstract The global financial crisis has devastated Europe’s economy and greatly damaged its prospects for closer integration. Europe’s plunge into the worst recession since the Second World War abruptly terminated the mood of triumphalism that accompanied the introduction of European Monetary Union (EMU) and the rather modest gains in productivity, growth and employment that had been achieved during the period of 2005–2007 after years of stagnation.1 By demonstrating that Europe remains especially vulnerable to external financial shocks and the contraction of global trade the crisis has shattered dreams of de-coupling from the US. It has also brought into sharper relief a number of underlying problems that have bedeviled the EU throughout its neoliberal phase of development: overemphasis on price stability and flexible labour and capital markets to generate employment and growth; uneven development and mounting financial imbalances; and German mercantilism.

Keywords: Hedge Fund; Global Financial Crisis; European Monetary Union; Unit Labour Cost; Lisbon Strategy (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-28153-0_7

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DOI: 10.1057/9780230281530_7

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