The End of Solidarité? The Euro Crisis and the European Union Model of Integration

Abstract

It is a truism that the European Union’s (EU’s) model of integration may not be appropriate for other regions, but the global financial crisis calls into question whether it is appropriate for Europe itself. Since 2010 the EU has been struck by a crisis of epic proportions, centred on the eurozone. This crisis is still unfolding but it is self-evident that the mechanisms for governing the single currency area have proved inadequate and have led to enormous tensions. Jean-Claude Juncker (Chairman of the eurozone group) was moved to describe Chancellor Merkel’s attitude as ‘un-European’ after she summarily dismissed the prospect of a common Eurobond before it was officially discussed at the European level (Peel, 2010). Even more dramatically, rumours spread of national leaders threatening to leave the euro at different stages in 2010. In 2011 the cycle of bailouts, speculation and rumours continued. A lot has been written about the economic, financial and political implications of this crisis. As existential questions are posed about the future of the euro, many of the key concepts of regional integration theory (sovereignty sharing, spillover, side-payments and so forth) have entered the public discourse, albeit not always in a very measured form.