The COVID-19 crisis has the potential to lead to long-term stagnation in the European Monetary Union (EMU). Especially the following challenges can be identified: a lack of labour market institutions can lead to nominal wage cuts and deflation; the lack of a strong fiscal centre can lead to an...

The economic crisis triggered by the COVID–19 pandemic once again raises doubts about the eurozone's ability to deal with joint economic problems given its dissimilar dynamics and asymmetries. This chapter contributes to a paradigm shift in the governance of the euro area towards a more...

Following the unconventional monetary policy tools of the last decade, ECB introduced a special monetary policy response to the COVID 19 pandemic, which occurred as a global challenge in early 2020. Aside from the measures aimed at providing ample liquidity, such as the targeted longer-term...

Although Euro Area member states agree on the need to protect the Economic and Monetary Union against the threat posed by the Covid-19, they differ on how to do it. These differences are the result of competing strategies of representation and legitimization that aim to establish specific ways...

The chapter engages in a comparison between the Eurozone crisis and the pandemic crisis. The cartography of both crises follows two axes: endogeneity versus exogeneity, and symmetric versus asymmetric effects. It then focuses on the reactions of EU institutions to the pandemic crisis and their...

In 1999, the euro was launched on the basis of treaties structured around the new economic orthodoxy that replaced Keynesianism. The Great Recession, the Euro Crisis and now the Pandemic Crisis, all of them deflationary demand crises which are incompatible with such an orthodoxy, have had a...