Financial integration defines European political economy. Though financial integration was crucial in establishing a common currency for the EU and a relatively shared EU political economy, it was partly responsible for the current EU financial crisis. The major question addressed in this paper is: What lessons can we learn about financial integration from the EU financial crisis? Although the EU crisis has exposed some of the glaring weaknesses of financial integration, it is essential for the EU not to financially and politically disintegrate because of the heavy political-economic interconnectedness and interdependency that constrains member states’ political institutions and economies. Though the EU puts constraints on member states’ political institutions and economies, this is acceptable because it serves the interests of the EU, which in turn provides benefits to its member states.

First Advisor

Professor Nick Kontogeorgopoulos, PhD

Degree Type



International Political Economy

Date of Award

Spring 5-17-2013