Abstract
More than a decade has passed since the outbreak of deficit crisis in Greece, and the question that arose was whether Greek economy was stabilised—at least until the COVID-19 pandemic. On the other hand, economic prospects in Europe are related—up to a point—to next steps in European integration, especially those dealing with the transformation of Monetary Union (MU) into a real Economic and Monetary Union (EMU). This correlation may be crucial for ‘peripheral’ Eurozone member states. For the purposes of the article, the operation of Monetary Union and its implications for less competitive Eurozone member states, including Greece, is examined. In this analysis impact of fiscal and pandemic crises on economy is also taken into account. The article examines initiatives and proposals for making the MU resembling more to EMU under the pressure of recent crises, concluding that a potential evolution of existing architecture of the Eurozone seems to be necessary, in order to avoid similar asymmetric shocks and crises in the future.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Andor, L. (2018). Resources for a prosperous Europe. Redesigning the EU Budget on a progressive way. Friedrich Ebert Stiftung WISO Diskurs, No. 18.
Bank of Greece (2015). Financial Stability Review. Bank of Greece, November-December 2015, Vol. 165.
Bank of Greece (2017). Financial Stability Review. Bank of Greece, November-December 2017, Vol. 177.
Barbier-Gauchard, A. et al. (2020). Towards a more resilient European Union after the COVID-19 crisis. Bureau d’Économie Théorique et Appliquée—BETA, Working paper n° 2020—33.
Barbosa, J.R. and Alves, R.H. (2011). Divergent Competiveness in the Eurozone and the Optimum Currency Area Theory. FEP Working Paper, No. 436.
Barro, R. et al. (2020). The Coronavirus and the Great Influenza Epidemic Lessons from the “Spanish Flu” for the Coronavirus’s Potential Effects on Mortality and Economic Activity. CESifo Working Papers, No. 8166/2020.
Bayoumi, T. and Eichengreen, B. (1996). Ever Closer to Heaven? An Optimum-Currency-Area Index for European Countries. European Economic Review, 41(3), 761―770.
Boitani, A. and Tamborini, R. (2020). Crisis and reform of the Eurozone. Why do we disagree? A reflection paper on the North-South divide. Friedrich Ebert Stiftung.
Busetti, F. et al. (2006). Inflation convergence and divergence within the European Monetary Union. European Central Bank Working Paper Series, No. 574.
Christodoulakis, N. (2012). Economic theories and crises. Histories of rationalism and imprudence. Kritiki, Athens.
Chrysomallidis, C. and Maravegias, N. (2017). European Integration and the Greek Economy: Greece at the Core or on the Periphery of Europe? Region & Periphery Scientific Review, 6―7, 71―97.
Crespo-Cuaresma, J. et al. (2005). Growth, Convergence and EU Membership. Austrian National Bank Working Paper, No. 2005-62.
De Grauwe, P. (1994). The Economics of Monetary Integration. Oxford University Press, Oxford.
De Grauwe, P. (ed.) (2001). The political economy of monetary union. Edward Elgar, Cheltenham.
De Grauwe, P. (2013). Design failures in the Eurozone: Can they be fixed? LSE ‘Europe in Question’ Discussion Paper Series LEQS Paper, No. 57/2013.
De Grauwe, P. (2020). The Need for Monetary Financing of Corona Budget Deficits. https://doi.org/10.1007/s10272-020-0885-1.
Demertzis, M. and Wolff, G. (2018). Providing funding in resolution: Unfinished business even after Eurogroup agreement on EMU reform. Bruegel Blog, available at http://bruegel.org/2018/12/providing-funding-in-resolution-unfinished-business-even-after-eurogroup-agreement-on-emu-reform/
Eichengreen, B. (2014). The eurozone crisis: the theory of optimum currency areas bites back. Notenstein Academy White Paper Series.
European Commission (2015). Completing Europe’s Economic and Monetary Union. Report by Jean-Claude Juncker in close cooperation with Donald Tusk, Jeroen Dijsselbloem, Mario Draghi and Martin Schulz.
European Commission (2017). Communication from the Commission to the European Parliament, the European Council, the Council and the European Central Bank. A European Minister of Economy and Finance. COM(2017) 823 final.
Frankel, J. and Rose, A. (1996). The Endogeneity of the Optimum Currency Area Criteria. Economic Journal, 109, 1009―1025.
Georgakopoulos, T. and Christou, G. (1992). Lectures on theory of economic integration. Stamoulis, Athens.
Giannakopoulos, N. (1994). International trade. Stamoulis, Athens.
Gros, D. (2017). The Commission’s views on strengthening the Euro area: Barking up the wrong tree? CEPS Commentary, available at https://www.ceps.eu/publications/commissions-views-strengthening-euro-area-barking-wrong-tree
HFC (2020). Analysing macroeconomic provisions regarding the 2021 State Budget. Hellenic Fiscal Council.
Ignatiou, M. (2015). Troika. Livanis, Athens.
Korres, G. et al. (2010). Economic of European integration, Stamoulis, Athens.
Krugman, P. and Obstfeld, M., 2003. International economics: Theory and policy. Pearson Education Inc, Boston.
Maravegias, N. (2015). The promise… of growth in Greece. Papazisis, Athens.
Maravegias, Ν. and Katsikas, D. (2017). Crisis in Southern European countries and failures of the Eurozone: The case of Greece. In: A. Kontis and S. Verny (eds), European Integration, Crises and Future Perspectives. Papazisis, Athens, 372―390.
Mongelli, F.P. (2008). European economic and monetary integration, and the optimum currency area theory. European Economy Economic Papers, No. 302.
OECD (2020a). OECD Economic Outlook—No. 107. Organisation for Economic Co-operation and Development.
OECD (2020b). Regional Policy for Greece Post-2020. OECD Publishing, Paris.
Papanikos, G. (2020). The impact of the COVID-19 pandemic on Greek tourism. Athens Journal of Tourism, 7(2), 87―100.
Patterson, B. and Amati, S. (1998). Adjustment to asymmetric shocks. European Parliament Economic Affairs Series Directorate-General for Research Working Paper, ECON 104, 09-98.
Pelagidis, T. (2012). European economic and monetary integration in the context of globalization. In: N. Maravegias and M. Tsinisizelis (eds), New European Union: 50 years. Themelio, Athens, 316―341.
Pelagidis, T. (2017). Why is economy’s recovery anaemic? I Kathimerini, 13 November.
Petrakis, P. et al, 2013. European economics and politics in the midst of the crisis. From the outbreak of crisis to the fragmented European Federation. Springer, London.
Pisani-Ferry, J. (2013). The politics of moral hazard. Bruegel blog, available at http://bruegel.org/2013/03/the-politics-of-moral-hazard/
Pournarakis, E. (1996). International Economics. An introductory analysis, Athens University of Economics and Business Publications, Athens.
PWC (2017). From recession to anaemic growth. PWC Greece, available at https://www.pwc.com/gr/en/publications/greek-thought-leadership/investments-greece.pdf
Rinaldi, D. and Núñez Ferrer, J. (2017). Towards an EU budget with an effective stabilisation function. FIRSTRUN research papers, available at http://www.firstrun.eu/files/2017/04/EU-Budget-Stabilisation-Function-FirstRun-v3-1.pdf
Rodriguez, M.J. (2017). Europe is still possible—Political adventures in the 21st century. Paper presented at the 15th International Globelics Conference. Athens, Greece, 11–13 October.
Sawyer, M. (2017). Can the Euro be saved? Polity, Cambridge.
SEV and Deloitte (2018). Toolkit for accelerating productive investment. Hellenic Federation of Enterprises, available at http://www.sev.org.gr/Uploads/Documents/50906/0_Investment_Toolkit_handbook_19_4.pdf
Sidiropoulos, M. (2020). What can Central Banks do to address the Covid-19 crisis. unpublished paper.
Theodoropoulos, S. (2001). Development and prospects of European economic integration. Stamoulis, Athens.
Tooze, A. (2020). Light in the tunnel or oncoming train? Available at: https://www.socialeurope.eu/light-in-the-tunnel-or-oncoming-train
Valinakis, G. et al. (2014). Exiting crisis. Feasible alternative proposals. Papazisis, Athens.
Van Rompuy, H. et al. (2012). Towards a genuine Economic and Monetary Union. Available at https://www.consilium.europa.eu/media/23818/134069.pdf
Vatavali, F. et al. (2020). Impact of COVID-19 on Urban Everyday Life in Greece. Perceptions, Experiences and Practices of the Active Population. Sustainability, 12, https://doi.org/10.3390/su12229410.
Walters, A. (1990). Sterling in Danger. Fontana, London.
Watt, A. and Watzka, S. (2018). Overcoming Euro area fragility. IMK Macroeconomic Policy Institute, IMK Report 139, available at https://www.boeckler.de/pdf/p_imk_report_139_2018.pdf
Wolff, G. (2017). Eurozone or EU budget? Confronting a complex political question. Bruegel blog, available at http://bruegel.org/2017/06/eurozone-or-eu-budget-confronting-a-complex-political-question/
Wolff, G. (2018). Griechenland braucht einen Neuanfang. Bruegel blog, available at http://bruegel.org/2018/07/griechenland-braucht-einen-neuanfang/
Wyplosz, C. (2020). A Covid test for Europe. Available at: https://www.fuw.ch/article/a-covid-test-for-europe/
Zavras, D. (2021). A cross-sectional population-based study on the influence of the COVID-19 pandemic on incomes in Greece. AIMS Public Health, 8(3), 376–387.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Chrysomallidis, C. (2022). The Transformation of EU’S MU to a Real EMU as a Need for Addressing Crises. In: Sklias, P., Polychronidou, P., Karasavvoglou, A., Pistikou, V., Apostolopoulos, N. (eds) Business Development and Economic Governance in Southeastern Europe. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-05351-1_5
Download citation
DOI: https://doi.org/10.1007/978-3-031-05351-1_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-05350-4
Online ISBN: 978-3-031-05351-1
eBook Packages: Economics and FinanceEconomics and Finance (R0)