The european sovereign debt crisis: Understanding its course through the positioning theory

This paper analyses the dynamics of and reasons for the quasi-federal unification of Europe from the perspectives of various schools of thought. Following the lead of the post-positivist research agenda, it studies the European sovereign debt. In this regard, it first presents the positioning theory and then puts forth and explains landmark events during the crisis. It also details storylines created by different actors that directed and shaped the course of events. The paper describes the institutions established by the European Union as part of the response mechanism—the European Fiscal Compact and the European Stability Mechanism—as well as two monetary programmes launched by the European Central Bank. Although they all met with constitutional objections and political opposition, they did succeed in preventing the disintegration of the Eurozone.