The EU Economic System under the Pressure of a Pandemic: Opportunities and Limits of Transformation
O. V. Butorina ()
Outlines of global transformations: politics, economics, law, 2020
The EU economy is experiencing the third major shock over the last 12Â years. First it was the global financial crisis,Â then the European sovereign debt crisis, andÂ now the COVID-19 pandemic. The economic system of theÂ European Union, that includes national economies and policies andÂ the scope of EU economic policies, takes a severe blow caused by an external factor - theÂ worldwide spread of an extremely contagiousÂ virus that threatens peopleâ€™s lives and health.The article aims at identifying the transformational resource of the EU supranational economic governance in response toÂ a new severe shock.Therefore, two tasks are set. Within theÂ first one, this paper presents an overview ofÂ the European economic landscape on theÂ eve of the pandemic, taking into accountÂ the long-term trends that emerged after theÂ Great Recession and the euro area debt crisis. Four key features of the â€œnew normalâ€ Â are highlighted: slow economic growth, fragile labor markets, high levels of governmentÂ debt and subdued inflation. We study theÂ economic effects of pandemic, or rather, theÂ confinement measures introduced by national governments, on these particular areas.Within the second task this paper evaluates the effectiveness of the key economicÂ responses the EU policy-makers and institutions are taking to counter the impact ofÂ the COVID-19 pandemic and to strengthen theÂ resilience of the EU economic system. This approach is translated into the reforms of the EU economicÂ governance underÂ way now with a view of achieving a genuine European and Monetary Union. The paper concludes that with the creation of theÂ single market and the euro the EU has taken almost full advantage of the negative integration. Ð nd now to promote growth andÂ employment it has to untap the potential ofÂ the positive integration, which benefits arelikely to spread unevenly across regions andÂ social groups.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ccs:journl:y:2020:id:668
Access Statistics for this article
More articles in Outlines of global transformations: politics, economics, law from Center for Crisis Society Studies
Bibliographic data for series maintained by ÐœÐ¾Ð»Ñ‡Ð°ÐºÐ¾Ð² Ð Ð¸ÐºÐ¸Ñ‚Ð° Ð®Ñ€ÑŒÐµÐ²Ð¸Ñ‡ ().