EUROPEAN POLITICAL ECONOMY IN TIMES OF CRISES

This course examines how major crises have transformed European political economy over the last two decades. It begins with the global financial crisis and the Eurozone sovereign debt crisis, analysing their causes, competing interpretations, and the policy responses adopted at both the national and European levels. Particular attention is devoted to debates over austerity, political consequences of crisis management, and the rise of anti-system politics. The course then explores how subsequent crises have further reshaped the European political and economic landscape. These include the Covid-19 pandemic, the geopolitical and energy consequences of Russia’s invasion of Ukraine, the return of industrial policy, growing geoeconomic competition between major powers, and the emergence of new challenges related to digital finance and monetary sovereignty. Through a deep understanding of European political economy in times of crisis, students will develop the capacity to independently examine contemporary European issues and policy debates. Theoretical tools from Economics and Political Science will be employed together with the analysis of empirical developments, institutions and policy choices in order to equip students with the critical knowledge and analytical skills necessary to understand European political economy in a rapidly changing global environment.

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1) Knowledge and understanding: students will acquire a deep understanding of research and research outputs in contemporary European political economy. 2) Applying knowledge and understanding: students will learn how to critically discuss and apply theoretical and empirical approaches to major debates in European political economy through weekly reports, presentations and debates; 3) Critical capacity: students will learn how to develop their own assessment of critical policy questions on European economic affairs through the examination of different perspectives and positions in the academic and policy debate; 4) Communication skills: students will learn to produce concise written reports, present and discuss academic readings, and participate in weekly debates on contentious topics in European political economy; 5) Learning abilities: through the analysis of comparative literature, academic articles and entire books, students will develop an independent capacity to analyse current events and policy developments in Europe.

Topics include: The origins and dynamics of the 2007–08 global financial crisis; debt, financial instability, and the Great Recession; the transmission of financial shocks to Europe. The Eurozone sovereign debt crisis; competing explanations of the crisis; contagion, financial markets, and crisis management; Greece, Ireland, and the politics of adjustment. Austerity and its alternatives; fiscal consolidation, economic performance, and political consequences; legitimacy and governance during the Eurocrisis; the role of the European Central Bank and European institutions. The rise of anti-system politics; crisis, inequality, and political discontent; market liberalism, populism, Brexit, and the transformation of democratic politics in Europe and beyond. The Covid-19 pandemic and the European response; monetary and fiscal policy during the pandemic; the suspension of fiscal rules, Next Generation EU, and the evolution of European economic governance. Russia’s invasion of Ukraine, the European energy crisis, and post-pandemic inflation; the geopolitical dimensions of economic policy and the resilience of the European economy. The resurgence of industrial policy; strategic sectors, technological competition, and state intervention; industrial policy in comparative perspective and the European Union’s geoeconomic turn. Economic security and the rise of U.S. geoeconomic statecraft; weaponized interdependence, industrial policy, trade restrictions and sanctions as instruments of strategic competition; from Bidenomics to Trump 2.0 and the changing role of economic power in international politics. Digital money and monetary sovereignty; cryptocurrencies, central bank digital currencies (CBDCs), the digital euro, and the changing relationship between money, technology, and geopolitical power. The future of European political economy in an era of recurring crises; competitiveness, strategic autonomy, industrial transformation, and the evolving role of the European Union in the global economy.

Alesina, Alberto; Favero, Carlo; & Giavazzi, Francesco (2019). Austerity: When It Works and When It Doesn’t. Princeton: Princeton University Press. Cochrane, John H. & Garicano, Luis (2025). Crisis Cycle: Challenges, Evolution, and Future of the Euro. Princeton: Princeton University Press. Hopkin, Jonathan (2020). Anti-System Politics: The Crisis of Market Liberalism in Rich Democracies. Oxford: Oxford University Press. Sandbu, Martin (2017). Europe’s Orphan: The Future of the Euro and the Politics of Debt. Princeton and Oxford: Princeton University Press. Schmidt, Vivien A. (2020). Europe’s Crisis of Legitimacy: Governing by Rules and Ruling by Numbers in the Eurozone. Oxford: Oxford University Press. Sinn, Hans-Werner (2014). The Euro Trap: On Bursting Bubbles, Budgets, and Beliefs. Oxford: Oxford University Press. Bilotta, Nicola. The Geoeconomics of Money in the Digital Age. Routledge, 2025.

The course will have one lecture, two presentations and one debate each week. Every Sunday by midnight students will have to submit a one-page Reading Report on one of the core readings assigned for that week (80% of reports submitted = 100% points). Every Monday and Friday, the designated student group will present the core readings to the class. Presentations will last approximately 30–40 minutes and group members will divide the work equally so that each student presents at least once during the course. Every Friday there will be an Oxford-style debate on a pre-chosen topic related to the weekly material. Debates will involve two students discussing a specific motion by defending the proposition and the opposition. Students will sign up for the debates independently.

Accuracy of the Reading Reports, as well as performances in presentations and debates, will account for one third (1/3) of the final mark. Provided that the student has attended the course and completed the required coursework, the remaining part of the assessment (2/3) will consist of a written exam with three open-ended questions: two requiring concise and factual answers, and one requiring students to develop a clear argument supported by concepts and examples from the course. Students who have not attended the course or have not completed the required coursework will take a longer final exam that will count for 100% of the final mark.

Students wishing to be supervised for their final dissertation ("tesi di laurea") must first complete the course and pass the final examination. Eligibility for supervision is limited to students who obtain a minimum grade of 28/30 in the final exam. Eligible students may subsequently contact me to discuss potential dissertation topics and supervision arrangements.