European Economics

22MEP60 · Master in Business Management, European Union Business & Society · ICHEC

The political economy of the Economic and Monetary Union in an age of polycrisis: monetary and fiscal governance, inflation, the Green Deal and Europe’s economic priorities.

Practical information

ICHEC Brussels Management School · co-taught with Ruba Saleh, who organises the conference series with high-level Eurocrats · first semester · in English · Students: Moodle page of the course (deadlines, uploads, announcements)

Course objectives

The course tackles the most pressing challenges facing the European Union in a world defined by polycrisis: the COVID-19 pandemic and the disruption of supply chains, the war in Ukraine and the energy and inflation shock that followed, the war in Iran and renewed fears of energy price shocks, and a global tariffs war that leaves Europe caught between the United States and China. Against this backdrop, the EU is committed to a triple transition towards a greener, more inclusive and digital economy.

We delve into European monetary integration and the actual functioning of the Economic and Monetary Union. Our approach is one of political economy, emphasising the constant interplay between political and economic forces, which is essential to understand the transfer of sovereignty at the core of the European integration project. Upon completion of the course, students should be able to:

  • critically evaluate the core of EU monetary and fiscal policies and their real-world consequences;
  • understand the EU’s position in a global context and its responses to major shocks;
  • understand the policies and regulatory measures that affect daily life, from prices to job market opportunities;
  • master the mechanics of economic and monetary integration: trade, labour markets, the history of the European Monetary System and the Maastricht process, the energy transition and climate change mitigation.

Assessment

  • Attendance and active participation (30%), including questions prepared for each conference.
  • Individual assignment (35%): an essay (max. 1,500 words) reflecting on one or more of the economic crises and challenges facing the EU and their repercussions.
  • Group work (35%): a final pitch on a European economic priority — what is at stake, the key challenges and opportunities, stakeholders, policies, and what is in it for the young generation.

Slides

Slides of my lectures are embedded below.

My lectures

Introductory lecture: Mapping European economic policies

Reminders on economic policies; reminders on EU institutions and their economic responsibilities; group work.

Lecture 1: The political economy of the Economic and Monetary Union

Understanding monetary union; the ECB, the most “independent” central bank?; no common fiscal policy but constraining rules; the Eurozone crisis.

Lecture 2: The Economic and Monetary Union facing new challenges

NextGenerationEU and the new fiscal instruments of the EU; fighting “shockflation”: the EU’s inflation governance gap; the European Green Deal.

Debate: How to harmonise European values with global industrial leadership?

A closing debate before the final group pitches on students’ European economic priorities.

Useful resources