Greece’s Sovereign Debt Crisis and Europe’s Response: Wither European Integration?
How and why did Greece’s fiscal predicament trigger Europe’s financial crisis and how well has Greece fared during the two bailout packages? I argue 1. the medicine may be more toxic than the illness (Greece has been asked to do too much, too soon given its capacity and political will); 2. the problem is national and supranational failure; and 3. the issue is unlikely to be resolved within the current time frame (bailout I 2013; bailout II 2015). Although the euro will likely survive, the crisis has made clear there is complete lack of national (especially Greek) and supranational leadership (national leaders are driven overwhelmingly by national calendars). As a result, EU legitimacy has been questioned in various quarters. There is urgent need to pause and re-evaluate the purpose and direction of European integration.