Crisis and Austerity: Is Europe a Declining World Power? March 2013

The economic crisis is severely affecting many EU policy areas. Observers have been looking very closely at the distressing effects brought about by the austerity measures implemented by European governments. However, little attention has been paid to the impact on the foreign policy of the European Union and its member states. This "ISPI Studies" intends to shed light on this issue and tries to understand to what extent this general disregard has being translating into an increasingly inward-looking attitude of the EU in times of crisis. In this regard, Nicoletti points out how the EU's response to the current crisis fails to address the long-standing causes of today's economic and political conundrum, while Giumelli examines the effects of budget cuts on the Common Security and Defence policy and how this is going to affect the EU standing on the world stage. In particular, Macias puts the spotlight on a specific, but extremely relevant aspect of the European external dimension: the EU as a key player in the field of international cooperation and the impact of the crisis on this source of soft power. Besides, Monteleone draws attention on the effects of the EU debt crisis on the EU-US relations placing emphasis on the risk of growing marginalization of the former in the international arena. Eventually, Zotti focuses on the consequences of the crisis on Greek foreign policy thus trying to grasp the rationale behind austerity measures imposed by the troika and the (negative) effects not only on Athens but also on the foreign policy of the EU.

Antonio Villafranca, ISPI Senior Research Fellow and Head of Europe Programme, presents the study.



'Crisis upon Decline'.
Foreign Policy Perspectives on the EU
beyond the Eurozone Crisis

Barbara Nicoletti

The debate over the consequences of the current economic crisis on European foreign policy has usually been focused on a short time period, starting with the beginning of the sovereign debt crisis, and has often failed to address... read all »

Eu Military Operations Budget under Strain:
the Crisis, the Eu and its Member States

Francesco Giumelli

Economic stability in the eurozone is essential to the stability not only of the European Union, but of the world economy as a whole. The current economic crisis is posing serious challenges not only to the stability of the European economy, but also... read all »

The European Union's Commitment as a Donor. Cooperation Policy Coherence
in Times of Crisis

Iñigo Macías-Aymar

Aid has traditionally been one of the most important tools of European foreign policy. The European Union and its member countries are among the most important donors. Their proactive role has allowed the EU to achieve... read all »

When the Doctor gets Sick: the Eurozone Crisis and Transatlantic Relations

Carla Monteleone

The crisis in the eurozone has had profound effects not only on the European economy, but also on the international actorness of the EU. This is particularly evident in US-EU relations. As certified by the last US-EU summit... read all »

The Crisis of the Periphery.
Greece and EU Foreign Policy

Antonio Zotti

Since the outbreak of the EU debt crisis, severe budget constraints and urgent domestic concerns have been seriously affecting Greece's foreign policy. The first part of the paper tries to shed light on how structural factors... read all »

ISSN 2281-3152


Antonio Villafranca and Antonio Zotti (Heads of Research), Francesco Giumelli, Iñigo Macías-Aymar, Carla Monteleone, Barbara Nicoletti