.The course aims at providing basic analytical tools for the understanding of the process of European integration, European institutions and European policy-making. Its main objective is to enable students to develop a critical comprehension of the inner functioning of the European Union’s economics and politics, so as to assess the reasons for the crisis and the policy choices that have been made to address it. Students will examine the different European institutions and their changes over time, as well as their relationship with national institutions. A special focus is dedicated to the European fiscal rules and the role of austerity measures implemented during the last financial crisis, the impact of the European monetary policy and the new monetary instruments - such as the Quantitative Easing and the European Banking Union - that have been put in place. Another goal of the class is to study and understand the role of European democracy and its interaction with national political environments. The rise of populism in Europe in recent years will be taken as an example in order to assess how economic developments and policy decisions taken at the European level impact local politics. The course concludes with a description of the pandemic crisis, the consequences of the Ukraine’s invasion and the new instruments introduced. Throughout the class, students will learn how to collect and scrutinize economic data so as to be able to identify possible correlations between time-series and assess different hypotheses explaining key economic and social developments.

Knowledge and understanding: By the end of the course, students should be able to: • develop a critical comprehension of the inner functioning of the European Union’s economics and politics and how they influence and impact social interactions and human behavior • understand different European institutions and their changes and challenges over time, as well as their future prospects • comprehend the role of European democracy and its articulate interactions with national political environments Throughout the class, students will learn how to collect and scrutinize economic data so as to be able to identify possible correlations between economic time-series. Applying knowledge and understanding: Upon completing the study program, students will be able to: • evaluate the impact of future changes in the European institutional architecture • assess and interpret different hypotheses explaining key economic, political, and social developments. • effectively communicate and work, as an expert in European issues Making judgements: Upon completing the study program, students will be able to: • present an informed scientific opinion in the public debate concerning institutional arrangements and policy decisions in the European Union. • apply reasoning in the main European subjects, thanks to the understanding of the economic and political aspects of European fiscal and monetary policies issues • gather and interpret information and data from different sources, in order to make judgements in an independent way • prepare original research supported by relevant bibliography and data analysis, and debate different perspectives to address the issue. Communications Skills: Upon completing the study program students will be able to: • develop the ability to communicate in written form through completing the assignment and oral form through the final exam and the class debate. • use the notions and the communication of European institutions • foster the development relational skills in international and multicultural settings • participate in a public policy debate, by researching and expressing expert opinions Learning skills: Upon completing the study program, students will be able to: • build an analytic toolbox from both economic and policy analysis • solve problems in dynamics settings and develop critical positions This ability will be acquired through class participation, class debate, and research carried out for the drafting of the written assignment.

The course is divided into four main parts. The first part explores the criteria for joining the European Union and the European Monetary Union. The second part of the course provides a critical evaluation of European fiscal and monetary policy. We start by analysing the evolution of fiscal rules, from the Maastricht Treaty to the Fiscal Compact, discussing arguments in favour and against budget policy and examine the ways in which Europe has addressed the crisis through fiscal policies, and how they have consequently evolved. A comparative analysis with the United States shows the complexity entailed in combining one monetary policy and nineteen distinct national budgets. Moreover, considering that the Fiscal Compact might become part of the European Treaties, we discuss the economic implications and the political constraints of amending Treaties and the possible window of opportunity for an institutional reform of the European Union. Concerning the monetary policy, the structure, nature, and objectives of the European Central Bank, as well as the creation of the Banking Union are analysed in details. A particular focus is made on the new non-conventional monetary instruments such as the Outright Monetary Transaction (OMT), the Security Market Program (SMP) and the Quantitative Easing (QE). The third part of the class comes to grips with the bail-out programs implemented in five European countries (Greece, Ireland, Portugal, Spain and Cyprus). We consider both successful examples, such as Spain and Ireland, and the more problematic ones, such as Greece and Portugal. The rise of populist parties in many European countries is addressed as one of the key challenges in Europe. The last part provides an evaluation of the new instruments introduced during the pandemic crisis (Sure, Pandemic emergency purchase Programme, Next Generation EU, European Stability Mechanism) and the Ukraine’s invasion. The course concludes by looking at the next steps in the process of European integration: how far (and how difficult) is the creation of a true Political Union in Europe, similar to the United States? Are the 27 Member States ready to give up more sovereignty? And, if so, in which areas? If further steps are not accomplished, what are the risks of moving backwards? What are the risks of a potential disruption of the Euro? Should the U.S. be more engaged with the current European situation in light of the broader geopolitical risks?

We will provide slides for each class in advance. Further readings, related to ongoing economic and political developments, will be assigned in class. However, a list of suggested readings is provided in order to have a general and analytical view on the economic workings of the Euro area. Baldwin, Richard E., and Wyplosz, Charles. The Economics of European Integration. 5th Edition. London: McGraw-Hill, 2015. Link A stimulating analysis of the evolution of EU governance since the creation of the Euro area is offered in:Bastasin, C. (2015) SavingEurope, Brookings Institution Press, Washington, (Second edition). Link For an overview of the evolution of the international crisis (2007-’09), you can refer to: M. Messori, The Financial Crisis: Understanding it to Overcome it, www.assogestioni.it, 2009. Free access, link Fabbrini, S.. Which European Union: Europe after the Euro Crisis. Cambridge University Press, 2015. Link Students are expected to read the papers/articles assigned each week, and to independently read from institutional websites and main newspapers. Please consult: • European Commission, European Economic Forecasts, Statistical Annex • IMF fiscal monitor • World Economic Forum statistical appendix

Slides will be available one week before the lesson covering each of the specific topics addressed in the course. Hence the traditional presentation of the analytical problems can be concise and leave room to Q&A and discussions. Guests will give a lecture on European Monetary Policy (name to be announced)

The assessment of students learning will be centered on a written exam, an oral exam, a class presentation and class participation. Oral examination = 40% Class participation = 10% Class presentation = 20% Economic article = 30% Group presentation in class Students are asked to work in groups to tackle a policy problem concerning the European debate (e.g. European monetary policy, public debt, fiscal rules...), prepare original research supported by relevant bibliography and data analysis, and debate in class different perspectives to address the issue. Oral exam Students unable to participate, will have to choose one of the books for the oral exam (50%) Group presentation in class Step 1: Select a recent article in a newspaper or newsmagazine published sometimes during the present school term, which deals in some depth with an economic issue. Step 2: write a commentary piece The article would be a detailed analysis or editorial concerning some recent economic development or policy proposal. You can spot mistakes in the economic reasoning by the author, or you can comment using concepts studied in class. Please be aware that as an economic post, data analysis, i.e. the ability of supporting opinions with data, time-series comparisons, and statistical or basic econometrical analysis, is highly valued. Maximum lenght: 6000 characters The maximum final grade of this Exam is, obviously, equal to 30/30 + distinction. Detailed information on the exam organization will be on-line one week before the beginning of the course. Following LUISS’ rules, the standard Sessions of the exam relating to the course European Economics are three: Winter Session Summer Session Fall Session. The Session immediately following the classes (in the case of European Economics, the Winter Session) allows for three specific rounds of exam (First, Second, and Third Round: the so-called “Appelli”). The other Sessions select a single date. The course of European Economics adopts additional rules. In this respect, it must be noted that: Relating to the Session structured in three rounds, any student would not be allowed to repeat the exam in the next round of this same Session, if she/he failed the proof (grade below 18/30) in the current round. This means that a student who attended the exam in the first round of the Winter Session (the so-called “Primo Appello”) and got the grade “Fail”, is forbidden to attend the exam in the second round of this same Session (the so-called “Secondo Appello”); and a student who attended the second round of the Winter Session (the so-called “Secondo Appello”) and got the grade “Fail”, is forbidden to attend the third round of this same Session (the so-called “Terzo Appello”).Still relating to the Session structured in three rounds, any student would be allowed to repeat the exam in the next round of this same Session, if she/he passed the proof (grade equal or higher than 18/30) in the current round but decided to repeat the exam to improve her/his performance. This means that a student who attended the first round of the Winter Session and got a grade ≥ 18/30, will be allowed to attend the second round of this same Session if she/he aims at improving her/his performance; and a student who attended the second round of the Winter Session and got a grade ≥ 18/30, will be allowed to attend the third round of this same Session if she/he aims at improving her/his performance.

Students, who successfully completed the exam, can become candidate for a Master thesis relating to European economic problems. In order to start the process, the potential candidate has to send an e-mail suggesting possible specific topics in this field. The receiver of this mail will propose a meeting to the potential candidate. At the end of the meeting the teacher will either agree to become the supervisor of this thesis or motivate the reasons of his refusal.

Sustainability topics are covered in lessons 10, 11 and 12