European Union’s Democratic Legitimacy after the MoUs: The Political Legacy of an Economic Crisis

This chapter focuses on two significant aspects of crisis management in the Eurozone: (a) its democratic legitimacy and (b) its socioeconomic consequences. The two issues are very important, since both the socioeconomic effects of an adjustment program and its democratic credentials determine to a large extent its “ownership” by local societies and consequently its chances of success. Effectively, these two aspects refer to the “input” and “output” side of democratic legitimacy, that is, to legitimation through democratic processes and representation, and policy outcomes respectively. The analysis evaluates the first aspect of the legitimacy equation using criteria derived from democratic theory and applying them to the governance structure of the bailout programs. On the second aspect of legitimacy, that of outcomes, the socioeconomic consequences of the crisis management are reviewed, and their distributive aspects discussed. The chapter demonstrates that the EU’s legitimacy has suffered along both aspects as a result of the crisis and the way it was handled. This leaves the EU in a particularly vulnerable state in the event of a future crisis.