Structural core–periphery divergences in the EU: the case of responses to the COVID-19 crisis in 2020

Ceron, Matilde; Palermo, Carlo Maria

doi:10.1080/23745118.2022.2037209

Cited by 7 publications

(2 citation statements)

References 40 publications

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“…However, the last decade has also witnessed a burgeoning debate on how post-GFC industrial policy may serve the state to regain control over markets and shape economic restructuring (Clift and Woll, 2012; Mazzucato et al, 2015; Mertens and Thiemann, 2019). Much of the research on regulatory integration in the EU highlights the diverging economic trends between the core and periphery and emphasises the constraining character of the single market and Eurozone regulations on member states’ policy space (Ceron and Palermo, 2022; Magone et al, 2016; Volintiru et al, 2021). Contrary to these views, Bruszt and Langbein (2020) recently showed how the EU’s regulatory frameworks offered novel resources and opportunities for member states to manage developmental outcomes.…”

Section: Introductionmentioning

confidence: 99%

Illiberal Versus Externally Fomented growth model readjustment: post-GFC state aid in the EU’s semi-periphery

Éltető

Medve-Bálint

2023

Competition & Change

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Most foreign capital-led, export-oriented Eastern EU member states and the consumption-driven Southern European countries suffered a heavy blow during the Global Financial Crisis (GFC) in 2008–09. The GFC exposed the vulnerability of these economies to external shocks and raised the need for readjustment of their growth models through state intervention. While the rise of illiberal governments drove readjustment in the East, the main driver was externally fomented in the South. This article focuses on state aid, a particular instrument of industrial policy, which has been a main vehicle for growth model readjustment. We seek to explore whether the provision of state aid in the two European semi-peripheries contributes to long-term post-crisis recovery by promoting competitive investments in two Eastern (Hungary and Poland) and two Southern EU members (Portugal and Spain). Relying on the European Commission’s state aid database, we show that after 2013, in the consumption-driven South, governments aimed to strengthen supply through aid, while in the export-oriented East, they were more concerned about promoting exporting firms. The article thus reveals how state aid may preserve and reinforce existing growth models in the semi-periphery even if strategic aims and rhetoric target readjustment.

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Section: Introductionmentioning

confidence: 99%

Illiberal Versus Externally Fomented growth model readjustment: post-GFC state aid in the EU’s semi-periphery

Éltető

Medve-Bálint

2023

Competition & Change

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“…This was the case of the fi nancial crisis of 2008, which highlighted the contradictions of the fi scal and monetary policy setting of the eurozone while the structural gap between the centre and the periphery continued to widen (Celi et al, 2019). The same goes for the COVID-19 pandemic (Ceron and Palermo, 2022). Where defl ationary policies and spending cuts have been more prevalent, such as in the southern periphery (Storm, 2019), death rates and socio-economic costs have skyrocketed (Prante et al, 2020).…”

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confidence: 99%

The Asymmetric Impact of War: Resilience, Vulnerability and Implications for EU Policy

et al. 2022

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Italy and the Trap of GVC Downgrading: Labour Dependence in the European Geography of Production

Cresti,

Dosi,

Riccio

et al. 2023

Ital Econ J

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How does Italy position inside the European structure of trade relationships? How labour bilateral flows have changed over time? Which type of employment activity has been outsourced? Which insourced? Focusing on a three-country perspective, what are the employment bilateral relationships between Italy-Germany-Poland (descending periphery-core-ascending periphery)? To address these questions we develop a novel set of bilateral labour dependence indicators inside I-O production networks. Overall, we provide evidence of the reconfiguration of Italy as falling into the trap of GVC downgrading, with an increasing number of trade relationships in employment requirements, particularly in the most strategic productions, as insourced from abroad. The offshoring strategy conducted so far has resulted in a weakening of its internal production capacity and employment absorption, even more harshly when compared to other European countries.

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Structural core–periphery divergences in the EU: the case of responses to the COVID-19 crisis in 2020

Cited by 7 publications

References 40 publications

Illiberal Versus Externally Fomented growth model readjustment: post-GFC state aid in the EU’s semi-periphery

Illiberal Versus Externally Fomented growth model readjustment: post-GFC state aid in the EU’s semi-periphery

The Asymmetric Impact of War: Resilience, Vulnerability and Implications for EU Policy

Italy and the Trap of GVC Downgrading: Labour Dependence in the European Geography of Production

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