Transcript THE EU INSTITUTIONAL SYSTEM

Greek membership of
the EU and the Eurozone
Prof. Constantine A. Stephanou
Jean Monnet Chair
Section of International and European Institutions
Panteion University
Director of ECEFIL
1. Preparation for EU membership

The first Association Agreement
concluded by the European Community
(1961/62)

The freezing of the Agreement during the
Greek dictatorship (1967-74)

The impact of the customs union
2. Adjusting to EU membership

The accession agreement (1979/81)

The impact of full economic integration:
The balance of payments crisis of 1985

Requests for special treatment

Requests for additional funding
3. Preparing for Eurozone
membership (1993-2002)

Compliance with the Maastricht Treaty
criteria: levels of public deficit, debt, basic
interest rate, inflation, exchange rate stability

Greek GDP growth: based on the
enhancement of consumption rather than
investment
4. Adjusting to Eurozone
membership

Accession to the currency union:
A problematic exchange rate

An irresponsible fiscal policy
5. The sovereign-debt crisis (2010-)
5.1 What is sovereign debt?
5.2 The exclusion of Greece from the financial
markets and the no-bailout provisions of the
Treaty (TFUE)
5.3 Financial assistance: IMF, Eurozone members
and Eurozone Stability Mechanisms
5.4 The restructuring of Greek sovereign-debt .
Was the restructuring voluntary?
5.5 Economic and fiscal adjustment 
5. The sovereign-debt crisis (2010-)
(cont.)
5.5. Economic and fiscal adjustment
5.5.1 A painful process involving “domestic”
devaluation
5.5.2 The first achievements:
 A balanced budget (primary surplus)
 An external balance (deep cut of
imports resulting from reduced demand).
5.5.3 The issue of debt sustainability: reducing
interest rates and extending debt maturities