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From Market Integration to Core State Powers: The Eurozone Crisis, the Refugee Crisis and Integration Theory
Author(s) -
Genschel Philipp,
Jachtenfuchs Markus
Publication year - 2018
Publication title -
jcms: journal of common market studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.54
H-Index - 90
eISSN - 1468-5965
pISSN - 0021-9886
DOI - 10.1111/jcms.12654
Subject(s) - spillover effect , externalization , european debt crisis , salience (neuroscience) , economics , market integration , externality , feature integration theory , international economics , state (computer science) , core (optical fiber) , politics , financial crisis , economic system , european union , european integration , macroeconomics , political science , microeconomics , psychology , materials science , algorithm , computer science , psychoanalysis , composite material , cognitive psychology , law
The Eurozone crisis and the refugee crisis are showcases of the problems associated with the EU's shift from market integration to the integration of core state powers. The integration of core state powers responds to similar demand factors as market integration (interdependence, externalities and spillover) but its supply is more tightly constrained by a high propensity for zero‐sum conflict, a functional requirement for centralized fiscal, coercive and administrative capacities, and high political salience. We show how these constraints structured the initial design of Economic and Monetary Union and of Schengen, made them vulnerable to crisis, and shaped policy options during the crises: they made horizontal differentiation unattractive, re‐regulation ineffective, centralized risk and burden‐sharing unfeasible, and the externalization of adjustment burdens to non‐EU actors necessary by default. In conclusion, we explore possible escape routes from the trap.