Show Summary Details
The Institutions of the European Union

The Institutions of the European Union (5th edn)

Dermot Hodson, Uwe Puetter, Sabine Saurugger, and John Peterson
Page of

Printed from Oxford Politics Trove. Under the terms of the licence agreement, an individual user may print out a single article for personal use (for details see Privacy Policy and Legal Notice).

date: 27 June 2022

p. 25111. The institutions of Economic and Monetary Union

from the euro crisis to COVID-19locked

p. 25111. The institutions of Economic and Monetary Union

from the euro crisis to COVID-19locked

  • Dermot Hodson

Abstract

Since 1999, a subset of EU member states—known collectively as the euro area—has delegated exclusive competence for monetary policy to the European Central Bank (ECB), while giving limited powers to the European Commission, ECOFIN, and the Eurogroup in other areas of economic policy. The euro crisis provided the first major test of the Economic and Monetary Union (EMU), as a sovereign debt crisis spread between member states and threatened to tear the single currency apart. The ECB and two new institutions—the European Stability Mechanism and Euro Summit—helped to keep the euro area together but at significant economic and political cost. EU institutions were better prepared for the initial economic consequences of the COVID-19 pandemic, but the crisis still produced important institutional changes. The COVID-19 recovery fund Next Generation EU gives the Commission and Council a major new role in economic policy, albeit a temporary one for now. The EMU illustrates three key dimensions of EU institutional politics: the tension between intergovernmental versus supranational institutions, leaders versus followers, and legitimacy versus contestation. It also reveals the explanatory power of new institutionalism among other theoretical perspectives.

You do not currently have access to this chapter

Sign in

Please sign in to access the full content.

Subscribe

Access to the full content requires a subscription