“Prof. Lorca has written a book with the suggestive and intriguing title of “The European Union Decoded.” Given Lorca’s background as an economist, one might think that her reflections would focus and be limited to the crisis of the euro. But her work is not limited to an economic analysis. It places her ideas in the historic and political context of the European Union and some of its member nations. It is a work of political economy that perfectly matches Clemenceau’s famous phrase that “War is too important to be left to the generals.” The creation and implementation of the euro as a currency is not an issue limited to economists, bankers and speculators. Understanding this required digging into political as well as economic questions.”
Enrique Barόn Crespo is a Spanish politician, economist, and lawyer. He is a member of the European Parliament.
This book will state that the European Union and the Eurozone were the economic integration example to follow for years, and that the adoption of a common currency—the euro—by a number of EU member-states is a monetary and political experiment that needs to be analyzed and studied. However, the worldwide economic crisis that unfolded in 2007 has put the whole economic integration process in question, the European project in jeopardy and the euro under pressure, with serious doubts that it can survive its first crisis since the currency was born on January 1, 1999.
The core argument of this book is twofold. First, it seeks to explain the difficult political, economic and fiscal idiosyncrasies of all member states in order to put the reasons for the economic crisis into a new and clear perspective. Second, it argues that the institutional response put forward to explain this tremendous crisis is flawed and dangerous because it does not solve the main underlying problem: the deep differences among member states on their understanding of economic and financial behavior.
The aim of this book is to counter the leading institutional explanation for the economic crisis that has impacted the entire EU. In summary, the EU has argued that this crisis was the result of a series of isolated financial and economic imbalances in a limited number of countries, and that future crises can be prevented if only member states obey and respect a series of economic and monetary norms and rules. However, this book argues that the current economic crisis is rooted in the different political, social, religious and even ethnic structures of the countries of the Union. This book aims to show the differences between EU member states when it comes to how they understand monetary, economic, and fiscal dogmas and paradigms.
This book, therefore, presents a unique and provocative explanation of why the EU and the Eurozone are still immersed in an economic crisis in mid-2015, with high unemployment rates and facing the dangers of deflation, even as the U.S. economy has reduced significantly its unemployment rate and is enjoying a strong growth rate.