AN ASSESSMENT OF FISCAL AND MONETARY POLICIES IN EUROPEAN UNION IN THE FRAMEWORK OF ORDOLIBERALISM DISCUSSIONS

Abstract

Whilst the successive 2008 Financial and debt crisis rendered the economies of especially the southern European countries fragile, Germany that has the strongest economy amongst the union, imposed economic and fiscal austerity policies on those countries and these developments have revived the debates of ordoliberalism in the last decade. On the other hand, the corona bonds problem, which arose during the coronavirus pandemic, strongly indicates that these debates would continue. In the paper, we have reviewed and evaluated the theoretical literature on ordoliberalism and concluded that under the current fiscal-monetary rules, the cracks within European Union would deepen and that would cause new economic, political, and social problems.