Framing the eurozone crisis: a case of limited ambition

Abstract:

The eurozone crisis provided a new opportunity for obtaining supranational fiscal integration within the European single currency area. This study applies a framing analysis to the crisis discourse that emerged from within the European Union’s intergovernmental forums involved in fiscal policy coordination. As well as linking policy frames to two different integration scenarios for the Economic and Monetary Union, the broader influence of macroeconomic ideology is also emphasised.

It is found that the response to the intensification of the crisis in Europe was to employ framing devices supporting intergovernmental fiscal discipline. While there were emergent supranational discourses over the longer term, these were reflective of a limited reform ambition. A key constraining factor here were the sovereignty concerns and issues of moral hazard circulating amongst member states, which together have ensured that a supranational fiscal policy is unlikely to be obtained in Europe.