Asia. Yet the rise of China had revolutionised the economic realities of the region, with all of Washington’s main regional allies increasingly dependent on China for trade and investment. Moreover, since the arrival of Chinese President Xi Jinping, Beijing has promoted a comprehensive blueprint of economicgovernance in Asia, based on Chinese leadership, values and rules. The most evident manifestations of this Chinese attempt to build alternative forms of economicgovernance have been the promotion of the Belt and Road Initiative (BRI) and the Asian Infrastructure
area forum had
centred on the issue of whether the envisaged meetings between ministers
and the ECB would compromise the political independence of the central
bank. The relationship between the Eurogroup and the ECB is one of the
rare aspects of the Eurogroup’s work which was discussed in early contributions to the literature on economicgovernance in Stage 3 (Campanella
2000; Bini Smaghi and Casini 2000). Miriam Campanella (2000) even
published her contribution under the title ‘The battle between ECOFIN11 and the European Central Bank’. More recently, Howarth and
Will inter-dependence reshape rules for the twenty-first century?
Josef W. Konvitz
cities; a challenge for citizens to accept
changes in living patterns. The advantages of a liberal, inter-connected
economy must reinforce, not compromise, the social and environmental
conditions of the places where people live. And most people live in cities
and urban regions.
If we are at a turning point, it is because we do not see solutions to
problems. And when problems accumulate, and appear intractable, the
resulting situation itself becomes critical. The crisis of 2008 revealed and
exacerbated economicgovernance shortcomings which the regulatory
mode of the
Assessing the Eurogroup’s informal
The Eurogroup constitutes a unique framework for discussions among
euro area finance ministers, the Commission and the ECB. As the preceding empirical analysis has shown, the Eurogroup is firmly anchored within
EMU’s economicgovernance framework. The following two chapters
review the findings of the case studies in the light of the theoretical argument which was set out in Chapter 1. This chapter assesses the potential
of the Eurogroup’s informal working method to foster
such a move
would free capital to address the far greater risk posed by instability in Spain
and Italy; it would also permit more expedient reform towards a comprehensive framework for the long-discussed model for ‘economicgovernance’ and
This harsh appraisal of Greece’s place in Europe was detailed in the
‘Iphigenia scenario’8 – a proposal by the British Chancellor of the Exchequer.
According to this, Greece would have to be sacrificed so the ‘tail winds’ could
return to the EU. The sacrifice of Greece was to take the form of a voluntary
its principal mode of rational calculation being suitable to all spheres of life.
The market is the epitome of efficiency in the allocation of resources and
is unfailingly superior to any other system of economicgovernance.
The market is the best guarantor of reliable quality in products and
The market guarantees sustained growth in standards of living in all countries, whatever their level of development.
The power of the discourse operates in several modes: as political rhetoric,
in business practice and through the ghostly role
unregulated segments of the national
or international labour market, economic crises and the rapid growth of new
service industries with lower trade union density, the balance of power has
shifted in recent decades in favour of employers, which can have significant
negative effects on job quality.
This change has often taken place gradually as the various influencing factors have steadily accumulated, causing labour standards to be eroded slowly.
The deregulation promoted by the economicgovernance framework of the
European Union (EU) has accelerated this process. Jill
progress with the Memorandum reforms. Finally, it was agreed
that the EFSF funds would be augmented through ‘leveraging’.1
On 4 October the Council of General Affairs (bringing together the EU’s
foreign ministers) approved the compromise reached with the European Parliament regarding the reform of the framework for economicgovernance. These
reforms strengthened the rules of fiscal discipline, and were designed to ensure
the continued reduction of the deficit and debt of member states. The Council
also approved the supervision of the economic policy of all countries, in
achievements made during the EU’s experiment with
new modes of governance. The collapse of the US housing bubble and
exposure of many European banks to the US sub-prime mortgage market
gradually spilled over into a financial crisis and a fully fledged Eurozone
crisis. The crisis has provided an exogenous shock that has not only tested
EU enlargement, the clash of capitalisms and the ESD
the resilience of the European economy, but the progress made within the
Lisbon decade, the robustness of EU economicgovernance and the unity
of the Eurozone. Lisbon II attempted to
- CALLAGHAN TEXT.indd 80
French social democratic economic policy
credibility, in combination with the political context of a Franco-German
axis on deficit forgiveness, created areas of room for manoeuvre, notably in
revising the interpretation and implementation of the SGP to align more
closely with French dirigiste preferences.
French socialism and dirigiste aspirations for European economicgovernance
In 1997, the Jospin Government’s attempts at institutional re-engineering
of the supranational economic policy regime advocated a political role