The Eurozone crisis and the erosion of democratic legitimacy: Lessons from the gold standard. ACES Cases No. 2013.3

This paper makes four propositions. First, it argues that the euro’s institutional design makes it function like the interwar gold exchange standard during periods of stress. Just like the gold exchange standard during the 1930s, the euro created a ‘core’ of surplus countries and a ‘periphery’ of deficit countries. The latter have to sacrifice their internal domestic economic equilibrium in order to restore their external equilibrium, and therefore have no choice but to respond to balance of payments crises by a series of deflationary spending, price and wage cuts. The paper’s second claim is that the euro’s institutional design and the EU’s response to its ‘sovereign debt crisis’ during 2010-13 deepened the recession in the Eurozone periphery, as EMU leaders focused almost exclusively on austerity measures and structural reforms and paid only lip service to the need to rebalance growth between North and South. As Barry Eichengreen argued in Golden Fetters, the rigidity of the gold standard contributed to the length and depth of the Great Depression during the 1930s, but also underscored the incompatibility of the system with legitimate national democratic government in places like Italy, Germany, and Spain, which is the basis for the paper’s third proposition: the euro crisis instigated a crisis of democratic government in Southern Europe underlining that democratic legitimacy still mainly resides within the borders of nation states. By adopting the euro, EMU member states gave up their ability to control major economic policy decisions, thereby damaging their domestic political legitimacy, which in turn dogged attempts to enact structural reforms. Evidence of the erosion of national democracy in the Eurozone periphery can be seen in the rise of anti-establishment parties, and the inability of traditional center-left and center-right parties to form stable governments and implement reforms. The paper’s fourth proposition is that the euro’s original design and the Eurozone sovereign debt crisis further widened the existing democratic deficit in the European Union, as manifested in rising anti-EU and anti-euro sentiment, as well as openly Eurosceptic political movements, not just in the euro periphery, but also increasingly in the euro core.

Citizenship in the discourse of Egyptian political parties. EUSpring Working Paper No. 6, June 2015 [also Citizenship Report no. 3]

The concept of citizenship is one of the most complicated in political and social sciences. Its long process of historical development makes dealing with it particularly complicated. Citizenship is by nature a multi-dimensional concept: there is a legal citizenship, referring first to the equal legal status of individuals, for instance the equality between men and women. Legal citizenship also refers to a political dimension, the right to start and/or join political parties, or political participation more broadly. Thirdly, it has a religious dimension relating to the right of all religious groups to equally and freely practice their religious customs and rituals. Finally, legal citizenship possesses a socio-economic dimension related to the non-marginalisation of different social categories, for instance women. All of these dimensions, far from being purely objects of legal texts and codifications, are emerging as an arena of political struggle within the Egyptian society. Citizenship as a concept has its roots in European history and, more specifically, the emergence of the nation state in Europe and the ensuing economic and social developments in these societies. These social developments and the rise of the nation state have worked in parallel, fostering the notion of an individual citizen bestowed with rights and obligations. This gradual interaction was very different from what happened in the context of the Arab world. The emerging of the nation state in Egypt was an outcome of modernisation efforts from the top-down; it coercively redesigned the social structure, by eliminating or weakening some social classes in favour of others. These efforts have had an impact on the state-society relation at least in two respects. First, on the overlapping relation between some social classes and the state, and second, on the ability of some social groups to self-organise, define and raise their demands. This study identifies how different political parties in Egypt envision the multi-dimensional concept of citizenship. We focus on the following elements: Nature of the state (identity, nature of the regime) Liberties and rights (election laws, political party laws, etc.) Right to gather and organise (syndicates, associations, etc.) Freedom of expression and speech (right to protest, sit in, strike, etc.) Public and individual liberties (freedom of belief, personal issues, etc.) Rights of marginalised groups (women, minorities, etc.)