EU policies – The European Crisis https://europeancrisis2015.weaconferences.net 1st October to 1st December, 2015 Mon, 09 Jun 2025 11:54:22 +0000 en-GB hourly 1 The euro, long-run convergence and the impact of the crises https://europeancrisis2015.weaconferences.net/papers/the-euro-long-run-convergence-and-the-impact-of-the-crises/ https://europeancrisis2015.weaconferences.net/papers/the-euro-long-run-convergence-and-the-impact-of-the-crises/#comments Thu, 01 Oct 2015 00:01:30 +0000 http://europeancrisis2015.weaconferences.net/?post_type=wea_paper&p=70 In this paper we analyse two different issues concerning economic performances and policies in Europe after the introduction of euro: the long-run real economic convergence (or divergence) across Eurozone countries and the impact of the recent crises. Regarding the first issue, we review the relevant economic theories, with particular reference to the “Optimal currency area” theories. Then we accomplish some empirical analyses to assess the extent of long-run economic convergence (or divergence), the similarity of economic cycles and trade integration within the Eurozone countries, as well as in the EU in general. The results show that the role of the monetary union in favouring real convergence is disputable.

As regards the second issue, we speak of “crises” since after the global financial crisis and the Great Recession (2007-09) in Europe we had a second crisis – the sovereign debt crisis – causing a second recession and whose impact is long-lasting. Particularly worrying are the consequences on the labour markets, especially on youth unemployment. Our opinion is that the austerity measures undertaken in the area, especially in the peripheral countries, have caused a prolonged recession, stagnation and persistent unemployment.

In the conclusive section, we emphasize the policy implications, related both to the radical reforms needed in the EU institutions and governance – in particular to guarantee a viable monetary union and favour real convergence of its economies – and the changes needed in current macroeconomic policies.

Prof. Enrico Marelli, Department of Economics and Management, University of Brescia, Italy, corresponding author (enrico.marelli@unibs.it).
Prof. Marcello Signorelli, Department of Economics, University of Perugia, Italy (marcello.signorelli@unipg.it).

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