The Greek Affair

a cause or a symptom of the European Union instability

Patricia Blazey, Robert Wetton

Research output: Contribution to journalArticle

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Abstract

Over the past year, the Euro has plunged from a strong world currency to a currency in crisis mode. Rescue packages have been put in place by the European Central Bank (ECB), supported by the International Monetary Fund (IMF), to rescue the ailing Greek economy. As a result, analysts and fellow Member States have labelled Greece as a major cause of the financial woes suffered by countries in the Euro zone. Spain, Portugal and Ireland appear to be the next in line for criticism, as these states teeter on the verge of economic crisis. This article argues that the current Greek crisis is a symptom, rather than the cause of European Union (EU) instability. This major financial problem is not limited to financial or economic constructs but extends to the very structure of the EU. The enlargement of membership for economic benefit, prior to the establishment of an overriding Constitution at the inception of the EU, has resulted in Member States focusing on state sovereignty. Member States’ sustained adherence to their individual political institutions, culture, language and legal systems, has been the primary cause for the failed attempt to create a unified political regime. Otherwise put, it is the absence of political unity, which is the source of economic and social instability. The article examines the Greek financial crisis in the light of increasing scepticism towards the future success of the EU and the heightened frustration of Member States. The article further outlines the likely effect upon EU Member States in the future.
Original languageEnglish
Pages (from-to)147-169
Number of pages23
JournalMacquarie journal of business law
Volume7
Publication statusPublished - 2010

Bibliographical note

Publisher version archived with the permission of the Dean, Division of Law, Macquarie University, NSW, Australia. This copy is available for individual, non-commercial use. Permission to reprint/republish this version for other uses must be obtained from the publisher.

Keywords

  • eurozone
  • future structure of EU state sovereignty

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