Index

 

 

 

1974–75 global recession 10

A

accession treaties 112

accountability 125–129, 162

Alliance of Liberals and Democrats for Europe (ALDE) 130–131

Alogoskoufis, George 42

Amsterdam treaty 111–112, 193

Anastasiades, Nicos 2, 86–88

Anglo Irish Bank 53

Ansip, Anders 104

Arab spring 145–146

Argentina 5, 50

Armenia 149

Ashton, Catherine 28, 43, 144

Asmussen, Jörg 51, 82

Austria 111, 127

influence 108

interest rates 93

Azerbaijan 149

Aznar, José Maria 17

B

Bagehot, Walter 9

bail-in rules 83, 90–91, 165

see also Cyprus

bail-outs

national approval requirement 127

no-bail-out rule 45, 162, 163–165

Balkans war 143

Bank of Cyprus 86–87

Bank of England 47, 157

bank recapitalisation 58–59, 74–77, 84

Bankia 72

banking sector characteristics 35

banking supervision see financial supervision

banking union 23, 74–75, 77, 83–85, 90–92, 106, 165, 195

see also deposit guarantees; financial supervision

Barnier, Michel 41, 138

Barroso, José Manuel

early days of crisis 41

European Commission 97, 98, 141, 172

Greece 3, 78

Italy 63

Batista, Paulo Nogueira 46

Belarus 149

Belgium 17, 100, 127

Berlusconi, Silvio

euro currency view 151

Italy’s failure to reform 59, 60, 62–63

People of Freedom party (PdL) 107

resignation 64

Black Wednesday 16–17

Blair, Tony 28, 112

BNP Paribas 40

Bolkestein directive 137

bond yields 37, 38, 61, 70, 89

bond spreads 37, 42, 70, 80, 88

Bootle, Roger 1

Bowles, Sharon 98, 129

Brandt, Willy 10

Bretton Woods 9–10

Brown, Gordon 24, 41, 48, 102, 112, 144

Bruegel think-tank 35, 74, 163, 166

budget deficits

Maastricht ceiling 15

timescales for meeting targets 88–89

see also stability and growth pact

budgets

annual, European 21, 27, 118

central 13, 168–170

federal 164, 168

fiscal capacity 84

Bulgaria 108, 113, 124, 126, 147

Bundesbank 16, 23, 157

C

Cameron, David 14, 17, 64–65, 117–119, 132, 140

Cannes G20 summit (2011) 62–64

Capital Economics 1

Cassis de Dijon judgment 21

Catalonia 178

CEBS (Committee of European Banking Supervisors) 35

central banks, national 22–23

Centre for European Policy Studies 34

Centre for European Reform 34

CFSP (Common Foreign and Security Policy) 142, 144

China 33, 139, 167

Chirac, Jacques 18, 23, 100, 127

Christofias, Demetris 86

Churchill, Winston 7, 115, 161

Clark, Christopher 178

climate change 135–136

Clinton, Hillary 144

Cockfield, Arthur 13

Committee of European Banking Supervisors (CEBS) 35

Committee of Permanent Representatives (COREPER) 20

Committee of Regions 21

common fisheries policy 100, 138

Common Foreign and Security Policy (CFSP) 142, 144

community method 19, 21–22

Competitiveness Pact see Euro Plus Pact

complacency pre-crisis 36–37

Constâncio, Vítor 34

constitution proposals 26–27

convergence criteria 14–16, 41, 112, 193

COREPER (Committee of Permanent Representatives) 20

COSAC (Conference of Community and European Affairs Committees of Parliaments of the European Union) 133

Council of Ministers 20, 121, 130

Council of the European Union see Council of Ministers

Court of Auditors 21

Court of First Instance 21

Crafts, Nicholas 9

credit ratings (countries) 69, 77–78, 108

Crimea 150

Croatia 113, 143, 147

current-account (im)balances 25, 31, 88–89, 167–168

customs union, German 9

Cyprus

accession 147

bail-out 2, 85–88

entry to euro 112

finances pre-crisis 30

Cyprus Popular Bank (Laiki) 86–88

Czech Republic 113, 118

D

Dayton agreement 143

de Gaulle, Charles 9, 22, 96

de Larosière, Jacques 41, 74

Deauville meeting between Sarkozy and Merkel 51–52, 102

debt mutualisation 74, 103, 166–167

defence and security 8, 143, 145

deflation 92

Delors, Jacques 11, 37, 97

Delpla, Jacques 167

democratic accountability 125–129, 162

democratic deficit 121, 129–132, 162–163, 171–172

Denmark

European participation 112

justice and home affairs (JHA) 111, 139

ministerial accountability 133

opt-outs 139

referendums 16, 27, 132

shadowing of euro 113

single currency opt-out 110, 115

UK sympathies 119

deposit guarantees 5, 40–41, 74, 77, 91

Deutschmark 10, 12, 16

devaluation, internal 31, 65–66

Dexia 72

Dijsselbloem, Jeroen 24, 87

double majority voting 20, 114

Draghi, Mario 156

appointment as ECB president 23, 68

crisis-management team 2

demand for fiscal compact 64

Long Term Refinancing Operations (LTRO) 68–70

outright monetary transactions (OMT) 78–81

pressure on Berlusconi 59

“whatever it takes” London speech 79

Duisenberg, Wim 23

E

e-commerce 137

east–west divide 108

ECB (European Central Bank)

bond-buying 47–49, 59–60

crisis-management planning 2, 4

delays 156

European System of Central Banks 22

liquidity provision 40–42, 68–70

outright monetary transactions (OMT) 79–81, 164, 175–176

role and function 22–24, 39–40, 170–171

supervision 6, 99, 175, 195

troika membership 160–161

EcoFin meetings 20, 114

Economic and Financial Committee 20

economic and monetary union (EMU) 11, 112

Economic and Social Committee 21

economic imbalances 30–34

The Economist

on ECB responsibilities 15

fictitious memorandum to Angela Merkel 1

ECSC (European Coal and Steel Community) 7–8

EEAS (European External Action Service) 142, 144

EEC (European Economic Community) 8

EFSF (European Financial Stability Facility) 26, 48, 55, 60–61, 81, 194

see also ESM (European Stability Mechanism)

EFSM (European Financial Stabilisation Mechanism) 48

Eiffel group 120, 129, 164

elections, European 121, 129–130

Elysée treaty 100

emissions-trading scheme (ETS) 135–136

EMS (European Monetary System)

creation of 11

exchange-rate mechanism 16

membership 15

EMU (economic and monetary union) 11, 112

EMU@10 36

energy policies 136

enhanced co-operation 111

enlargement 33, 146–147

environment summits 135

Erdogan, Recep Tayyip 148

ESM (European Stability Mechanism) 194

establishment 26, 55, 80–81

operations 58, 75, 76, 91

Estonia 65, 108

ETS (emissions-trading scheme) 135–136

EU 2020 strategy 137

euro

break-up contingency plans 2–3

convergence criteria 14–16, 41, 112, 193

crash danger 47–48

introduction of 4, 18

notes and coins 18

special circumstances 3–4

euro crisis

effect on world influence 143–146

errors 155–161

focus of attention 135–141

Euro Plus Pact 55, 195

euro zone 4

economic dangers 175–178

increasing significance of institutions 113–114, 120

performance compared with US 154–155

political dangers 175–178

political integration 125

trust 173

Eurobonds 54, 59, 74, 166–167

Eurogroup of finance ministers 24, 114

European Banking Authority 114, 195

European Central Bank (ECB)

bond-buying 47–49, 59–60

crisis-management planning 2, 4

delays 156

European System of Central Banks 22

liquidity provision 40–42, 68–70

outright monetary transactions (OMT) 79–81, 164, 175–176

role and function 22–24, 39–40, 170–171

supervision 6, 99, 175, 195

troika membership 160–161

European Coal and Steel Community (ECSC) 7–8

European Commission

commissioners 19, 172

errors 160

future direction 171–172

influence and power 96–97, 99, 119, 125

intrusiveness 127, 140–141

organisation 19

presidency 131, 144

proposals for economic governance 50

European Community 12

European Council 20, 98–99

European Court of Human Rights 21

European Court of Justice 21

European Defence Community 8

European Economic Community (EEC) 8

European External Action Service (EEAS) 142, 144

European Financial Stabilisation Mechanism (EFSM) 48

European Financial Stability Facility (EFSF) 26, 48, 55, 60–61, 81, 194

see also European Stability Mechanism (ESM)

European Financial Stability Mechanism 26

see also European Stability Mechanism (ESM)

European Investment Bank 21

European Monetary Institute 22

European Monetary System (EMS)

creation of 11

exchange-rate mechanism 16

membership 15

European Parliament 20–21, 97–98, 99, 100, 119, 121, 129–132, 171

European People’s Party 117, 127, 130–131

European Political Co-operation 142

European semester 25, 195

European Stability Mechanism (ESM) 194

establishment 26, 55, 80–81

operations 58, 75, 76, 91

European Systemic Risk Board 41

European Union

driving forces for monetary union 12–13

expansion 26

historical background 7–12

treaty making 26–28

world influence 140, 142–150

European Union Act (2011) 117, 132

Eurosceptics 13, 123

Finns Party 124

Jobbik 125

League of Catholic Families 125

National Front 124

Party of Freedom (PdL) 124

UK Independence Party (UKIP) 118, 125, 140

excessive deficit procedure 24, 88–89, 194, 195

exchange-rate systems 3, 9–11

exchange rates 164

F

Farage, Nigel 98, 118

Federal Deposit Insurance Corporation (FDIC) 77

Federal Reserve (US) 23, 47, 48, 157

federalism 19, 110, 116, 161–165, 168–170, 177–178

financial integration 35–36

financial supervision 195

ECB 6, 99, 175, 195

Jacques de Larosière proposals 41

national 23, 35

single supervisor 76–77, 83–84, 90

Finland

accession 26, 111

Finns Party 124

influence 108

ministerial accountability 133

fiscal capacity 84

fiscal compact treaty 25–26, 64–65, 118, 194–195

fiscal policy, focus on 30–31

Five Star Movement 124, 126

fixed exchange-rate systems 3, 9–10

Foot, Michael 116

forecasts, growth 92

foreign policy 142–143

Fouchet plan 22

France

credit rating 69, 103

current-account balance 168

EMS exchange-rate mechanism 16

excessive deficit procedure 89

GDP growth 32

and Greece 44

influence 100–104, 142–143

Maastricht deal 12, 16

public debt 159

public opinion of EU 123, 124

single currency views 16–17

unemployment 159

veto of UK entry 115

vote to block European Defence Community 8

freedoms of movement 8, 13

G

Gaulle, Charles de 9, 22, 96

Gazprom 136

GDP growth 32

Georgia 149

Germany

2013 elections 90, 106, 125

bond yields 37, 89

Bundesbank 16, 23, 157

constitutional (Karlsruhe) court 45, 95, 128, 158

credit rating 69, 77–78

crisis management errors 155–156

current-account surplus 89, 105, 167–168

demands post Greek bail-out 50–51

economic strengths and weaknesses 14

GDP growth 32

and Greece 44

influence 100–106

Maastricht deal 12, 15–16

national control and accountability 128, 133

parliamentary seats 100

political parties 93, 125

public debt 159

public opinion of EU 123

unemployment 159

unification 16

Zollverein 9

Giscard d’Estaing, Valéry 11, 18, 26, 100

Glienicker group 163, 170

gold standard 9–10

Golden Dawn 124

government spending (worldwide) 4

governments, insolvency of 50

great moderation 31

Greece

2012 election 73, 126

bail-out deal 45–47, 56–58, 65–67, 70, 158

bond yields 37, 61–62

current-account balance 168

debt crisis 42–45

euro membership 18, 112, 115

finances post bail-out 93–94

finances pre-crisis 30, 71

GDP growth 32

potential euro exit 1–5, 81–83

public debt 159, 166

public opinion of EU and euro 113, 123, 124

referendum on bail-out 2, 61–62

unemployment 159

Gros, Daniel 34

H

Hague, William 151

Haider, Jörg 127

Hamilton, Alexander 162, 167

Heath, Edward 10, 116

Heisbourg, François 104

Hollande, François 73–74, 89, 103–104, 127

proposed reforms 177

Hungary 41, 113, 126, 147

Hypo Real Estate 41

I

Iceland 53, 147

ideological differences 114–115

IKB Deutsche Industriebank 40

immigration 139–140, 146, 147

impossible trinity 13

inter-governmentalism 96, 128, 174

interest rates 93, 164

internal devaluation 31, 65–66

International Monetary Fund (IMF)

banking union 74

crisis-management planning 2, 4–5

Cyprus 86–87

errors 160–161

euro zone support 48

Greece 44–46, 56–57, 66, 83, 93–95, 160

Latvia 65

rainy-day funds 169–170

special drawing rights (SDR) 63

Iraq 143

Ireland 89, 110

bail-out 53–54, 56, 57, 89

bank crises 40, 71

bond yields 37, 47, 53, 61, 89

current-account balance 168

finances pre-crisis 30

GDP growth 32

influence 107

opt-outs 111, 139

public debt 159, 166

public opinion of EU 123

referendums 27, 28, 132

unemployment 159

Italy

2013 elections 107, 124, 126

bond yields 37, 61, 89

convergence criteria 17

current-account balance 168

danger of collapse 59

EMS exchange-rate mechanism 16

excessive deficit procedure 89

GDP growth 32

influence 100, 104, 107

interest rates 93

public debt 159, 166

public opinion of EU 123

single currency views 17

unemployment 159

J

Jenkins, Roy 11

Jobbik 125

Juncker, Jean-Claude 98, 104, 177

candidate for Commission Presidency 131

EU 2005 budget crisis 28

Eurobonds 54

Eurogroup president 24

justice and home affairs (JHA) 139

K

Karamanlis, Kostas 42

Karlsruhe constitutional court 45, 95, 128, 158

Kauder, Volker 105

Kerry, John 144

Kohl, Helmut 12, 18, 100

L

labour markets 14, 33–34

Lagarde, Christine 51, 58, 62, 92

Laiki 86–88

Lamers, Karl 111

Lamont, Norman 17

Larosière, Jacques de 41, 74

Latin Monetary Union 9

Latvia 41, 65, 67, 88, 108

Lawson, Nigel 16

League of Catholic Families 125

legislative path 21–22

Lehman Brothers, ECB reaction to collapse 4

Letta, Enrico 107–108

Libya 143, 145

Lipsky, John 57

Lisbon treaty 28, 45, 194

foreign policy 142

institutions 20, 131

justice and home affairs (JHA) 139

subsidiarity 133

voting 20, 114

Lithuania 88, 113, 153

Long Term Refinancing Operations (LTRO) 68–70, 72

Luxembourg 77–78, 100, 108, 169

Luxembourg compromise 97

M

Maastricht treaty 11–12, 15, 22, 142, 193

opt-outs and referendums 16, 110–111

MacDougall report (1977) 13, 169

Major, John 12, 111, 116

Malta 100, 112

Maroni, Roberto 34

Mayer, Thomas 1

McCreevy, Charlie 41

MEPs 20–21, 130

Merkel, Angela

2013 re-election 90

banking union 74–77

Cannes G20 summit (2011) 63–64

crisis response 40–41, 44

European constitution 28

fictitious memorandum to 1

future direction 178

power and influence 89, 102–106, 153

Sarkozy collaboration 60, 61–62, 102–103

support for Cyprus 86

support for Greece 5, 45, 49–52, 81–82

support for UK 118–119

union method 22, 128

voter support 125

Messina conference 8, 115

migration 139–140, 146, 147

Miliband, David 144

Mitterrand, François 11, 12, 18, 100

Mody, Ashoka 163

Moldova 149

Monnet, Jean 8, 152

Montebourg, Arnaud 104

Montenegro 147

Monti, Mario 64

influence 70, 75–76, 107

A New Strategy for the Single Market (2010) 137–138

Morocco 146

Morrison, Herbert 8

Morsi, Muhammad 145

Moscovici, Pierre 75

multi-annual financial framework 21, 27, 118

Mundell, Robert 12–13

mutualisation of debt 74, 103, 166–167

N

national budgets 89, 125

National Front 124

NATO

defence spending targets 145

European security 8

membership 110

Netherlands

credit rating 77–78

excessive deficit procedure 89

influence 100, 108

ministerial accountability 133

UK sympathies 119

Nice treaty 194

no-bail-out rule 45, 162, 163–165

north–south divide 33–34, 108

Northern Rock 40

notes and coins 18

Nouy, Danièle 90

Nuland, Victoria 149

O

Obama, Barack 63

official sector involvement (OSI) 83

OMT (outright monetary transactions) 79–81, 164, 175–176

Germany’s constitutional court judgment 95, 128

optimal currency-area theory 12–13, 14–15

Orban, Viktor 126

Osborne, George 117, 119

OSI (official sector involvement) 83

outright monetary transactions (OMT) 79–81, 164, 175–176

Germany’s constitutional court judgment 95, 128

P

Pact for the Euro see Euro Plus Pact

Papaconstantinou, George 43

Papademos, Lucas 64

Papandreou, George 56, 60

election 43

Greek referendum 61–62

resignation 2, 64

Party of Freedom 124

Poland 109, 113

Policy Exchange 1

political parties 124–125, 139–140

political union 10, 12, 133–134

Pompidou, Georges 10

Poos, Jacques 143

Portugal 110

bail-out 54, 57, 89–90

bond yields 37, 47, 53, 61, 89

public opinion of EU and euro 113

power, balance of 99–101

price stability goal of ECB 23

private-sector involvement (PSI) in debt restructuring 51–52

Prodi, Romano 17, 25, 97

Progressive Alliance of Socialists and Democrats (S&D) 130–131

public debt 15, 158–159 see also sovereign debt

public opinion of EU and euro 121–124

Putin, Vladimir 149–150

Q

qualified-majority voting 13, 20, 99, 121

negative qualified-majority voting 25, 195

quantitative easing (QE) 47, 15

R

Rajoy, Mariano 70, 75–76, 127

recapitalisation, bank 58–59, 74–77, 84

redenomination 3–4, 153–154, 175

Reding, Viviane 139

referendums 27, 28, 121–122, 132

REFIT initiative 172

Regling, Klaus 26

Renzi, Matteo 107–108

rescue fund see European Stability Mechanism (ESM)

resolution mechanism 90–91, 165, 195

single resolution mechanism (SRM) 195

single supervisory mechanism (SSM) 195

Romania 41, 108, 113, 124, 126, 147

Rome treaty 8, 97, 110, 193

Rösler, Philipp 78

Rueff, Jacques 9

Rumsfeld, Donald 143

Russia, influence on Ukraine 149–150

Rutte, Mark 77

S

Samaras, Antonis 2, 78, 82, 93–94

Santer, Jacques 97

Sarkozy, Nicolas

crisis response 40–41, 44

economic governance 49–50

European constitution 28

LTROs and the Sarkozy trade 69

Merkel collaboration 51–52, 60, 61–62, 102–103

Schäuble, Wolfgang 62, 75, 84, 90–91, 106, 111, 154

Schengen Agreement 110, 111–112

Schmidt, Helmut 11, 100

Schröder, Gerhard 18, 101, 127

Schulz, Martin 131

Schuman Day 8

Schuman, Robert 7–8

Scotland 112, 178

SDR (special drawing rights) 63

Securities Market Programme (SMP) 48, 79

services directive 34

Shafik, Nemat 65

Sikorski, Radek 109

Simitis, Costas 18

Simms, Brendan 179

single currency

benefits 152

club within a club 112

driving forces 12–14

importance of 113

vision for 9

see also euro

Single European Act 13, 193

single market 4, 137–138, 174–175

Sinn, Hans-Werner 101

six-pack 25, 50, 195

Slovakia 112

adoption of euro 41

influence 108

Slovenia 88–89, 112

influence 108

SMP (Securities Market Programme) 48, 79

snake in the tunnel 10

Solana, Javier 142

sovereign debt 165–166 see also public debt

Spain 110

bail-out 70–73, 89

bank recapitalisation 84

bond yields 37, 89

CDS premiums 72

current-account balance 168

danger of collapse 59

excessive deficit procedure 89

finances pre-crisis 30

GDP growth 32

influence 107

public debt 159

public opinion of EU 123, 124

single currency views 17

unemployment 159

special drawing rights (SDR) 63

stability and growth pact 18, 24, 29, 50–51, 127, 194

Stark, Jürgen 59, 106

Steinbrück, Peer 43

Strauss-Kahn, Dominique 24, 44, 57

stress tests, bank 72, 175

subsidiarity 133, 141

Sweden 109, 111, 112

euro opt-out 18, 115

UK sympathies 119

Syria 145

Syriza 124

T

Target II 157

Thatcher, Margaret 27, 110, 116

third energy package 136

Tilford, Simon 34

Tindemans, Leo 111

trade policy 138

Transatlantic Trade and Investment Partnership (TTIP) 138–139

treaty making and change 26–27, 173–174

Treaty of Amsterdam 111–112, 193

Treaty of Lisbon 28, 45, 194

foreign policy 142

institutions 20, 131

justice and home affairs (JHA) 139

subsidiarity 133

voting 20, 114

Treaty of Nice 194

Treaty of Rome 8, 97, 110, 193

Treaty on European Union (Maastricht treaty) 11–12, 15, 22, 142, 193

opt-outs and referendums 16, 110–111

Treaty on Stability, Co-ordination and Governance (TSCG) see fiscal compact treaty

Tremonti, Giulio 54, 60

Trichet, Jean-Claude 151, 156

bond-buying 47–48, 52–53

crisis-management planning 2

early warnings 39–40

ECB president 23

IMF 44

Italy 59

True Finns 124

Turkey 132, 147, 148

Tusk, Donald 109, 114

two-pack 25, 89, 195

U

UK Independence Party (UKIP) 118, 125, 140

Ukraine 149–150, 179–180

unemployment 158–159, 170

union method 19, 22

United Kingdom

current-account balance 168

economic strengths and weaknesses 14

EMS exchange-rate mechanism 16

euro crisis reaction 117–118

euro membership 112

European budget contribution 27–28

European involvement 8, 10, 12, 115–119

future status 174–175

influence 100–101, 106, 109, 142–143

initial application to join EEC 9

opt-outs 110–111, 139

public opinion of EU 123

single currency views 17

United Left party 124

United States

abandonment of gold standard 10

federalism model 177

foreign policy 143

performance compared with euro zone 154–155

Urpilainen, Jutta 77

V

Van Gend en Loos v Nederlandse Administratie der Belastingen (1963) 21

Van Rompuy, Herman 98

crisis-management planning 3

Cyprus 87

European Council presidency 20, 28

Italy 63

roadmap for integration 74–75, 84, 173

support for Greece 43–45

Venizelos, Evangelos 57, 62

Verhofstadt, Guy 131

Véron, Nicolas 35

Vilnius summit 149

von Weizsäcker, Jakob 166

W

Waigel, Theo 17–18

Wall Street flash crash 47

Weber, Axel 49, 56, 106

Weidmann, Jens 40, 80, 82

Weizsäcker, Jakob von 166

Werner report (1971) 10

Wilson, Harold 116

Wolfson Prize 1

World Bank 33

World Trade Organisation 138–139

Y

Yanukovych, Viktor 149

Z

Zapatero, José Luis Rodríguez 59, 62

Zollverein 9