Archive - Conference Papers

Unusual times call for unusual measures. This paper demonstrates how neofunctionalist theory can be used to understand why the European Central Bank (ECB) has recently become a main driver of European integration. Since the onset of the European sovereign debt crisis, the ECB’s policy can be characterised in two ways. Firstly, the ECB tries to prevent a disintegration of the Eurozone and ensure the current level of integration. Here the Outright Monetary Transactions (OMT)-Programme of of September 2012 key. Its legal nature is, however, disputed. Secondly, the ECB has started to use its discretionary powers to push for more integration in matters of financial regulation as well as economic and fiscal policy, thereby triggering a powerful spill-over effect.