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The Euro Crisis and Differentiated Integration

European Union
Integration
Euro
Frank Schimmelfennig
University of Zurich
Katharina Holzinger
Universität Konstanz
Frank Schimmelfennig
University of Zurich

Abstract

Which consequences did the Euro crisis have on differentiated integration in the European Union (EU)? We distinguish centripetal and centrifugal effects at three levels: membership in the Eurozone, the integration gap between members and non-members, and external effects on other policy fields. The neo-functionalist path dependency hypothesis and the post-functionalist politicization hypothesis predict different effects. Our analysis of data on differentiated integration in EU primary and secondary law and recent legal developments in response to the crisis confirm path dependency: membership in the Eurozone has remained stable, whereas the integration gap between the euro area countries and the rest of the EU has increased considerably.