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The Politics of the Euro-ZoneStability or Breakdown?$
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Kenneth Dyson

Print publication date: 2000

Print ISBN-13: 9780199241651

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199241651.001.0001

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Policies for a Stable Euro‐Zone: Strengthening the ‘Stabilization State’

Policies for a Stable Euro‐Zone: Strengthening the ‘Stabilization State’

Chapter:
(p.251) 8. Policies for a Stable Euro‐Zone: Strengthening the ‘Stabilization State’
Source:
The Politics of the Euro-Zone
Author(s):

Kenneth Dyson (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0199241651.003.0009

This chapter sums up the arguments of the book, which point overwhelmingly to the need for a pragmatic approach to ensuring the Euro‐zone's stability, and reviews three possible ways forward. First, it draws attention to the importance of domestic political and policy developments in Germany, and their implication for Germany's role as economic hegemon within the Euro‐zone. Second, it explains the need for a fiscal transfer mechanism to assist members adversely affected by local shocks that affect them individually. Third, it calls for the emergence of a neo‐corporatist alternative to neo‐liberalism as a strategy for labour‐market flexibility. It concludes with a review of the reasons for reinforcing the Euro‐zone as a ‘stabilization state’.

Keywords:   Euro‐zone, Germany, labour market, stabilization, stabilization state

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