SNS Uppsala: The Greek crisis: Political and economic challenges

More than five years since the global financial crisis in 2009, the Greek crisis remains a focal point within the Eurozone. On January 26, 2015, Greece elected a new government lead by leftist party Syriza, supported by rightwing party Independent Greeks. The new Greek government has since pursued renegotiation of the bailout agreements, and repeatedly clashed with its main creditors – primarily the IMF, the European Commission, and the ECB.

The Greek government continues to emphasize its commitment to end austerity and renegotiate the bailout agreements in order to honor campaign promises. At the same time, Greece’s creditors demand reforms on range of issues such as tax evasion, corruption and bureaucratic inertia, but also public sector rationalization, structural changes and improvements of public finances. Greece also currently faces high outflows of funds from banks, and a rapidly declining ability to service public debt. Disagreements on the terms of financial support, and lack of reform progress, raises several risks such as sovereign default and “Grexit”.

The ongoing drama raises a number of questions: Why has reform implementation stalled? Is it possible for Greece to regain competitive advantages and return to economic growth within the Eurozone? What would a Grexit look like? What lessons does Greece offer for Eurozone member states? What would a breakdown in trust between different EU members say about potential future rifts within the Eurozone?

Participants:

HARRY FLAM is Professor Emeritus of International Economics at the Institute for International Economic Studies, Stockholm University. His research interest is in international trade, foreign direct investment and European economic integration.

ANNA MICHALSKI is Associate Professor of political science at the Department of Government, Uppsala University. Her research interest is in international relations and European politics.

JOAKIM PALME is Professor of political science at the Department of Government, Uppsala University. His research interest is in the welfare state, labor markets, and the effects of the financial crisis on political and social conditions throughout Europe.

Moderator:

JOHAN SCHÜCK is columnist at the Swedish daily DN, writes about economic and socio-economic affairs.

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