Trust and Crisis Management in the European Union: An Institutionalist Account of Success and Failure in Program Countries (1st ed. 2018)

By: Dóra Győrffy

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Synopsis: This book addresses and explains the divergent economic and political outcomes of the financialcrisis in the eight European Union member states which needed a bailout program: Cyprus,Greece, Hungary, Ireland, Latvia, Portugal, Romania and Spain. Looking at crisis management asa series of relationships where cooperation is essential, this book focuses on the essential role oftrust during the process. It argues that the presence or absence of trust during the negotiationand implementation of the bailout program leads to self-reinforcing cycles of success andfailure. The analysis of these eight countries also explores the institutional sources of trust – itshows that a commitment to limited government is associated with both economic success andresistance to populism. The final chapter considers the implications for the future of the EU andcalls attention to the importance of strengthening domestic institutions in order to bridge thegap between concerns over moral hazard and expectations of solidarity.