This essay discusses the question, how the different crises impacted on the relations between the European Union’s institutions. The main purpose of this study is to develop an understanding of how the institutions changed during the decade of crisis itself and among themselves. In the following lines impact and change will be described on the example of the eurozone crisis. The paper first shed a light on the role of the European Parliament and how its position has been influenced. The second part is concerned with the European Commission, while thirdly, the role of the European Council will be considered. Fourthly, the role of the European Central Bank will be discussed and in what ways its position about the eurozone crisis let the supranational institution to power. In conclusion, the final chapter draws upon the entire topic and summarizes the discussed points.
“Crisis can also be blunt opportunities for supranational institutions to show leadership.” (Hodson and Puetter, 2019).
The institutions of the European Union play an important role in the maintenance of the construction of European politics. During their developments over the last decades they went through a number of changes, crises, and realignments. Especially in the last decade, these influences on the European Union have increased. Chiefly, in the growing economical and political European world, the decade of crisis has become a central issue for the European Union. Starting with the euro crisis, over to the Ukraine crisis, the refugee crisis, the democracy and confidence crisis with rising populism, and the Brexit dilemma – the so-called, multiple crises forced and force the European Union and its intergovernmental and supranational bodies to constantly face new challenges.
Table of Contents
1. Introduction
2. The European Parliament and the Eurozone Crisis
3. The Role of the European Commission
4. The European Council and Executive Power
5. The European Central Bank as Crisis Manager
6. Conclusion
Research Objectives and Key Topics
This study investigates how the series of crises occurring after 2008, specifically the eurozone crisis, impacted the institutional balance of power within the European Union. The central research question examines how supranational and intergovernmental bodies adapted to new pressures and how their mutual relationships and authority evolved during this decade of uncertainty.
- Shifting power dynamics between the European Parliament, Commission, and Council.
- The evolution of the European Central Bank from a technocratic body to a political crisis manager.
- The decline or adaptation of the "community method" in favor of intergovernmental decision-making.
- The impact of crisis governance on the EU's democratic legitimacy and institutional accountability.
Excerpt from the Book
The role of the European Central Bank during the eurozone crisis
The role of the European Central Bank during the eurozone crisis developed more and more to a present crisis manager, because of their interventions in the financial markets. It is said that ECB’s commitment to unlimited bond purchases was probably the single most important step in deescalating this stage of the euro crisis (Hodson and Puetter, 2019, p. 395). The European Central Bank shifted away from the Bundesbank model of fixation on a narrow mandate of monetary stability into a wider concern for the financial and macroeconomic stability of the eurozone. The ECB expanded and made increasingly active use of its non-conventional monetary policy instruments. It provides vital liquidity to the euro area banking system and to avert risks of deflation (Dinan, 2017, p. 62). Suitable for this is ECB president Mario Draghi’s statement that the European Central Bank would do “whatever it takes” to protect the euro (Dinan, 2017, p. 68). This demonstrates clearly the determination of this institution. The European Central Bank was ready to play the role of leader of last resort to save the single currency.
Summary of Chapters
1. Introduction: This chapter introduces the "decade of crisis" and establishes the focus on how these multiple challenges influenced the institutional landscape and political relations within the European Union.
2. The European Parliament and the Eurozone Crisis: This section explores the contradictory developments regarding the Parliament's influence, highlighting both its exclusion from core reform legislation and its successful negotiation of new oversight powers.
3. The Role of the European Commission: The chapter analyzes the Commission's dual role as a policy initiator and economic watchdog, while addressing debates regarding its declining legislative influence and changing competences.
4. The European Council and Executive Power: This part examines the rise of the European Council as the primary decision-making body and the resulting shift toward an intergovernmental approach to crisis management.
5. The European Central Bank as Crisis Manager: This chapter discusses the transformation of the ECB from a technocratic entity into a key political actor and manager of financial stability during the crisis.
6. Conclusion: The final chapter synthesizes the findings, confirming that while institutional power shifts have occurred, the multiple crises have fundamentally acted as an engine for European integration.
Key Keywords
European Union, Eurozone crisis, European Parliament, European Commission, European Council, European Central Bank, institutional power, intergovernmentalism, supranationalism, democratic deficit, crisis management, policy coordination, economic governance, Lisbon Treaty, integration.
Frequently Asked Questions
What is the core focus of this study?
The study examines the impact of the post-2008 decade of crises on the institutional structure and power dynamics within the European Union.
What are the primary thematic areas covered?
The text focuses on the institutional roles of the European Parliament, the European Commission, the European Council, and the European Central Bank during the eurozone debt crisis.
What is the main research question?
The research asks how the relations between the EU's institutions changed during the decade of crisis and how these institutions adapted their roles in response to new pressures.
Which scientific methods are employed?
The analysis utilizes a qualitative review of academic literature, policy documents, and expert statements to assess shifts in power and governance.
What does the main body of the work address?
The main body investigates the specific institutional responses to the eurozone crisis, including legislative reforms like the "Six-Pack" and the expansion of executive powers.
Which keywords best describe this research?
Key terms include European Union, Eurozone crisis, institutional power, crisis management, and the democratic deficit.
How has the role of the European Central Bank changed?
The ECB transitioned from a primarily technocratic body focused on monetary stability to a proactive, political crisis manager that intervenes significantly in financial markets.
Does the European Parliament benefit from recent reforms?
While the Parliament was sidelined during initial crisis legislation, it has successfully negotiated increased oversight powers and expanded its influence through practices like the "banking dialogue."
Why is the "community method" considered to be in decline?
The text suggests that the "community method" is being bypassed in favor of intergovernmental decision-making, where the European Council takes the lead over the Commission.
What is the significance of the "Spitzenkandidaten" procedure mentioned?
The procedure is identified as an attempt to enhance the legitimacy of the European Commission by linking the election of its president to the outcome of European Parliament elections.
- Quote paper
- Maximilian Scheller (Author), 2019, How, and in what ways, did the decade of crisis after 2008 impact on relations between the EU’s institutions?, Munich, GRIN Verlag, https://www.grin.com/document/1193543
