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Reconciling the short and the long run: governance reforms to solve the crisis and beyond


  • Karl Aiginger
  • Olaf Cramme
  • Stefan Ederer
  • Roger Liddle
  • Renaud Thillaye


The policy brief is the first outcome of the four-year project 'Welfare, Wealth and Work for Europe' which started in April 2012 and aims at providing the analytical basis for a new European growth path towards a socio-ecological transition. It identifies the blind spots of the institutional changes embarked on by the EU in the aftermath of the sovereign debt crisis, and puts forward a combination of short-term and long-term measures in order to make an exit strategy compatible with the requirements of an economically dynamic, socially inclusive and ecologically sustainable Europe. The first section analyses the main features of the reformed governance framework and shows that the recent push towards integration does not fundamentally correct the flawed and self-contradictory features of Maastricht's institutions. A second section weighs different exit strategies and shows that the short-term logic of insurance and adjustment needs to be completed by the long-term vision of a sustainable economic union. The option of a smaller Eurozone is not considered as a viable road for all the economic and political costs it represents. The final section formulates recommandations to EU policy-makers with the view both to overcome the debt crisis and to lay the ground for a socio-ecological transition in Europe. In doing so, it pays particular attention to three kinds of trade-offs and tensions that have emerged throughout the crisis: the potential clash between adjustment and social cohesion ; the uncertainty on how to combine a more integrated Eurozone with a Community-based EU-27; the conflicting demands for more sovereignty and more democracy against a backgroung of deeper integration.

Suggested Citation

  • Karl Aiginger & Olaf Cramme & Stefan Ederer & Roger Liddle & Renaud Thillaye, 2012. "Reconciling the short and the long run: governance reforms to solve the crisis and beyond," WWWforEurope Policy Brief series 1, WWWforEurope.
  • Handle: RePEc:feu:wfepbr:y:2012:m:9:d:0:i:1

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    Cited by:

    1. repec:feu:wfedel:y:2016:m:2:d:0:i:11 is not listed on IDEAS
    2. repec:wfo:wstudy:58791 is not listed on IDEAS
    3. IMK Düsseldorf & OFCE Paris & WIFO Wien, 2013. "Crisis continues to smoulder," IMK Report 80e-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    4. Karl Aiginger, 2013. "A new strategy for the European periphery," WWWforEurope Policy Paper series 1, WWWforEurope.
    5. repec:wfo:wstudy:46673 is not listed on IDEAS
    6. repec:feu:wfedel:y:2016:m:2:d:0:i:12 is not listed on IDEAS
    7. Stefan Ederer, 2015. "Macroeconomic imbalances and institutional reforms in the EMU," WWWforEurope Working Papers series 87, WWWforEurope.
    8. repec:wfo:wstudy:46712 is not listed on IDEAS
    9. repec:wfo:wstudy:47247 is not listed on IDEAS
    10. Karl Aiginger, 2014. "Industrial Policy for a Sustainable Growth Path," WIFO Working Papers 469, WIFO.
    11. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition. Synthesis Report Part I," WWWforEurope Deliverables series 11, WWWforEurope.
    12. repec:wfo:wstudy:47017 is not listed on IDEAS
    13. Karl Aiginger, 2013. "The "greening" of industrial policy, headwinds and a possible symbiosis," WWWforEurope Policy Paper series 3, WWWforEurope.
    14. Karl Aiginger, 2012. "Social Policy Against Budgetary Bottlenecks and Fiscal Pact," WIFO Working Papers 440, WIFO.
    15. Stefan Ederer & Stefan Weingärtner, 2013. "Remapping EMU. On the future Construction of Economic and Monetary Union," WWWforEurope Policy Paper series 5, WWWforEurope.
    16. Fritz Breuss, 2012. "Towards a New EMU," WIFO Working Papers 447, WIFO.
    17. repec:wfo:wstudy:47009 is not listed on IDEAS
    18. Stefan Ederer & Peter Reschenhofer, 2013. "Macroeconomic Imbalances in the EU," WWWforEurope Working Papers series 42, WWWforEurope.
    19. Karl Aiginger & Kurt Kratena & Margit Schratzenstaller & Teresa Weiss, 2014. "Moving towards a new growth model," WWWforEurope Deliverables series 3, WWWforEurope.
    20. IMK Düsseldorf & OFCE Paris & WIFO Wien, 2013. "Die Krise schwelt weiter," IMK Report 80-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.

    More about this item


    good governance; competitiveness; ecological excellence; institutional reforms; economic strategy; EU integration; European economic policy; European governance; multi-level governance;

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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