Crisis in the European Monetary Union: A Core-Periphery Perspective
by Giuseppe Celi (Author), Andrea Ginzburg (Author), Dario Guarascio (Author), Annamaria Simonazzi (Author)

About the Author
Giuseppe Celi is Associate Professor of Economics at the University of Foggia, Italy. He has been the coordinator of the university’s Economic Theory PhD programme.
Andrea Ginzburg was Professor of Economic Policy at the University of Modena and Reggio Emilia, Italy.
Dario Guarascio is a researcher in applied economics at the National Institute of Public Policy Analysis (INAPP), Italy. He is in charge of the research unit 'Skills and labour market transitions'.
Annamaria Simonazzi is Professor of Economics at La Sapienza University of Rome, Italy. She is co-editor of Economia & Lavoro and on the editorial board of inGenere.

About this book
After decades of economic integration and EU enlargement, the economic geography of Europe has shifted, with new peripheries emerging and the core showing signs of fragmentation. This book examines the paths of the core and peripheral countries, with a focus on their diverse productive capabilities and their interdependence.
Crisis in the European Monetary Union: A Core-Periphery Perspective provides a new framework for analysing the economic crisis that has shaken the Eurozone countries. Its analysis goes beyond the short-term, to study the medium and long-term relations between ‘core’ countries (particularly Germany) and Southern European ‘peripheral’ countries. The authors argue that long-term sustainability means assigning the state a key role in guiding investment, which in turn implies industrial policies geared towards diversifying, innovating and strengthening the economic structures of peripheral countries to help them thrive.
Offering a fresh angle on the European crisis, this volume will appeal to students, academics and policymakers interested in the past, present and future construction of Europe.

Brief contents
Introduction 1
Part I A medium-term perspective 13
1 The Euro crisis: a faulty institutional construction 15
    1 Introduction 15
    2 The Werner Report and the idea of Europe 17
    3 The Snake and the EMS 22
    4 The bumpy road to the EMU 28
    5 The EMU’s institutional flaws 33
    6 In the crisis: bail-outs, politics, reforms 38
    7 Conclusions 42
2 The European core-periphery divergent development before the crisis: 1999–2008 53
    1 Introduction 53
    2 Germany: from Europe’s sick man to export superstar 56
    3 Wage moderation 59
    4 Housing: a ‘non-tradable’ sector? 66
    5 The construction of the Central European Manufacturing Core 70
    6 Conclusions 73
3 France: the waning of a core country 79
    1 Introduction 79
    2 From dirigisme to statist liberalism 81
    3 The waning of a key sector: the automotive industry 88
    4 Conclusions 92
4 The Eurozone’s double-dip recession: interpretations and policies 96
    1 Introduction 96
    2 A standard balance of payments crisis? 98
    3 The Target2 debate: a stealth bail-out? 108
    4 The unfolding of the crisis and the role of austerity 112
    5 The structural impact of the crisis 123
    6 Conclusions 127
5 Inequality, poverty and imports: core, periphery and beyond 140
    1 Introduction 140
    2 Rich Germany, poor Germans 141
    3 Poor Southern Europe, poor Southern Europeans 148
    4 South of South: the case of the Italian Mezzogiorno 154
    5 Conclusions 158
6 The network of European trade between core and periphery 166
    1 Introduction 166
    2 The European trade networks 167
    3 The structure of trade 174
    4 The evolution of the automotive industry in Europe 181
    5 Conclusions 188
Part II European de-industrialization processes in a long-term perspective 193
7 The weakening of the European growth engine 195
    1 Introduction 195
    2 The fading of the golden age 196
    3 Heterodox explanations of the fall in investment: industry and finance 202
    4 Orthodox explanations of the fall in investment: secular stagnation 203
    5 Financialization and Europeanization 206
    6 Conclusions 212
8 The interruption of industrialization in Southern Europe: a centre-periphery perspective 217
    1 Introduction 217
    2 The embeddedness of centre-periphery relations 217
    3 The global crisis of the mid-1970s in Southern Europe: peripheral tertiarization and impoverishment of the productive structures 222
    4 The European integration of a latecomer country: Italy 224
    5 The late-latecomers’ European integration 229
    6 Democratic transition and restructuring without re-industrialization, 1975–1985 231
    7 The financialization of the European periphery 234
    8 The German internationalization strategy: ‘widen the market and narrow the competition’ 240
    9 Conclusions 242
9 A policy divide: industrial policies in ‘core’ and ‘peripheral’ countries 251
    1 Introduction 251
    2 The vicissitudes of a concept 253
    3 European industrial policy 259
    4 The Investment Plan for Europe (Juncker Plan) 262
    5 Industry 4.0: a Europe-wide opportunity or a new factor of divergence? 264
    6 Conclusions 268
10 Conclusions 274
    1 Institutional flaws and policy mistakes 274
    2 Structural differences 275
    3 Partial, cautious reforms 276
    4 Institutional reforms 276
    5 A German Europe 277
    6 A European Germany 278
    7 A longer-term perspective 280
    8 Income distribution and the European social model for long-term sustainability 281
    9 Towards a shared alternative programme 282
Index 285

Series: Routledge Studies in the European Economy (Book 45)
Length: 312 pages
Publisher: Routledge; 1 edition (January 18, 2018)
Language: English
ISBN-10: 1138685836
ISBN-13: 978-1138685833