Eurocritical (eBook)

Roderick Macdonald is Professor of Management and Technology at the École des sciences de la gestion, Université du Québec à Montréal, Canada. He has published books and articles on business strategy in new industries, fundamental economic notions used in business and moral analysis in management. His previous book with Palgrave Macmillan is Genesis of the Financial Crisis.

Preface 5
Contents 7
List of Figures 8
List of Tables 12
Introduction: Europe, the Euro and a Crisis 14
Europe, the European Union and the Euro 15
The Road to the Euro 18
Fiscal and Monetary Policy in the Euro Zone 24
The Crisis 25
Europe in the Wake of the Global Financial Crisis 31
Outline of This Book 35
References3 37
A Financial and Economic Crisis in Greece 38
Introduction 38
The Incubation of Modern Greece 43
The Economy in the 1980s and Early 1990s 46
Fiscal Policy2 47
Monetary Policy and Financial Deregulation 56
The Macroeconomic Environment 58
Slowing Productivity Growth as a Prelude to Access to the Euro6 61
On the Statistics Provided by the Greek Government 70
Access to the European Monetary Union 73
An Apparent Boom 76
Dynamic of the Crisis in Greece 87
References12 95
Ireland: From Prosperity to Crisis 98
Introduction 98
A Condensed Prehistory of Ireland’s Economy 102
The Post-War History of the Irish Economy 103
Ideas 103
Actors 107
Action and Policy Changes 109
1966–1973 113
1970s and 1980s 115
Context 115
Politics and Policies 118
The Celtic Tiger 1993–2007 127
A Blueprint for Economic Growth 127
Lower Tax Rates 127
Membership in the European Union 128
Wages 129
Privatization 132
Participation in the European Union and Workforce Dynamics 134
Results 136
The Onset of the Crisis 140
A Hiccough 140
Real Estate and a Few Prophets 142
How the Real Estate Boom Came to an Abrupt Pause 145
A Dynamic of the Crisis in Ireland 151
References6 155
Spain, the Euro and a Crisis 160
Introduction 160
Spain Before 2007 165
The Financial Situation of Spain in 2007 171
The Real Estate Bubble in Spain, 1997–2008: Spurious Explanations 172
The Real Estate Bubble in Spain, 1997–2008: Underlying Factors 175
The Demographic Situation 176
Interest Rates 177
La ley del suelo 178
Corruption of Local Officials 181
La Muela 182
Marbella 185
The Role of Money Laundering in Launching the Real Estate Bubble 188
Financing Real Estate: The cajas de ahorro 193
Fiscal Impact of the Crisis 198
Dynamics of the Financial Crisis in Spain 200
References11 206
How Italy Experienced the Euro Crisis 211
Introduction 211
A Condensed History of Italy’s Economy 215
The Golden Age, 1953–1971 220
The Impact of SOEs 223
Ente Nazionale Idrocarburi (ENI) 223
Electrical Interlude 227
Conclusions on ENI and SOEs 229
The Close of the 1960s 231
The 1970s and 1980s 232
The Electorate Revolts 1992–1994 238
Italy in the Euro 244
A Dynamic of the Financial Crisis in Italy 249
References10 256
Conclusion: The Crisis and Lessons for the Administration of the Euro 259
Understanding the Euro Crisis 259
Overview of This Book 261
Similarities and Differences in the Crisis Experience 266
Lessons from the Crises in Europe 270
A Lesson from the Euro Crisis 273
Afterthoughts 276
References4 279
Index 280