Economic Annals-XXI: Volume 130, Issue 5-6(2), Pages: 20-23
Pyliavets, O. (2013). The bailout strategies of the European Union: from the intergovernmental consensus towards the technocratic federalism. Economic Annals-XXI, 5-6(2), 20-23. http://ea21journal.world/index.php/ea-v130-06/
The Institute of World Economy and International Relations of the National Academy of Sciences of Ukraine, Kyiv, Ukraine
The bailout strategies of the European Union: from the intergovernmental consensus towards the technocratic federalism
Abstract. The economic breakdown factored into the polarization and crisis of legitimacy at the national and supranational levels in the European Union. The purpose of this article is to study the implications of the economic crisis on the institutional building of the European Union within the context of democratic governance in a supranational system. The European Union is presented as a unique polity in which traditional democratic institutions of national political systems are modified and supplemented, leading to third essential transformation of democracy. The economic crisis challenged the democratic principles of the integration processes, posing the dilemma of effectiveness of intergovernmental deliberation to foster urgent economic reforms.
Growing scepticism towards bailout policies, developed by the European Union institutions, gives an impetus for the development of the radical political forces which are introducing anti-integration rhetoric in public discourse, calling for reconsideration of the integration paradigm. The recent developments and decision to enhance economic integration towards banking union strengthen the EU’s image as a political elite’s project, while the communication loop between its citizens and supranational institutions is hindered and balance between intergovernmental and federalist structures is disrupted in favour of technocratic federalism. To overcome this crisis, the EU needs to establish new efficient narrative to consolidate the European nations and achieve more democratic supranational governance.
Keywords: the European Union; Integration; Political System; Institutional Crisis; Legitimacy; Disintegration Paradigm; Federalism
JEL Classification: Z18
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