Organizational Identity and the European Union: The Conflict of European Identity

Abstract

This paper will use the concept of organizational identity to discuss the ways in which the progress of European economic integration has contributed to the development of a European economic identity. This identity is established through the practical application of the many criteria and expectations of economic activity that over time have become associated with membership to the European Union (EU). This paper will argue that the characteristics of this organizational identity have led to a conflict between those who accept the path of this identity, and those who feel that it lacks adequate attention to European social policy. This is referred to as identity incongruence, where an individual perceives that an organizational identity is out of line with the expectations associated with that individual's ideal identity. Finally, it will be argued that the current sovereign debt crisis has escalated the identity conflict to a point where some have come to reject outright the EU's economic identity, which has the potential to facilitate the break-up of the Euro zone.