Beyond the economics of the Euro: Analysing the institutional evolution of EMU 1999-2000

摘要

This paper examines how and why the institutional framework governing EMU hasevolved since the creation of the euro. Building on theories of institutionalism, the paper in particular investigates to what extent functional spill-overs from the single currency to other policy domains, like macroeconomic policies or financial regulation, met with anadequate institutional response, and to what extent the existing institutional framework conditioned the response to the financial crisis. The interaction between policyrequirements and institutional capabilities is examined both in “ordinary” times (1999-2007) and under “crisis conditions” (2007-2010). The paper uses a typology of changewhich helps to put into perspective both the resilience of the institutional framework of EMU and its capacity to adapt. In this respect, it allows for a better understanding and framing of the current reforms of EMU economic governance. It concludes that even though the crisis will accelerate institutional development, it will do so only in a gradual way, as path dependence and inbuilt bias towards incremental change will prevent policymakers pursuing a “clean slate” strategy.