“An Ever Closer Union” – The Impact of the Eurozone Debt Crisis on National [Party] Politics

In the wake of the Euro crisis democratically elected governments were being removed and replaced by bureaucrats or ruling parties lost elections, but because of the strait jackets imposed by the Troika, there was no change in policies.

If democracy is the space within which the people express their will, then this has been a bad time for the democratic process. It’s also been a bad time for traditional party political definitions. Lines have been blurred and parties which know what they are against with little to say on what they are for are on the rise.

So What Now?

For two decades and more, the European Union has been trying to get ‘ownership’ for structural reform in Greece.

Spending has been savagely throttled back. But there is no click, no reset, no moment on the road to Damascus, where the Greek government and Greek society ‘gets’ the need to change.

Redesigning the Architecture of Greek Local Government

The ongoing European debt crisis has singled out the peripheral economies of the European South by shedding light on their latent pathologies and malfunctions. Often viewed as an epitome of a ‘Mediterranean’ model of political and economic organization, Greece gave utmost expression to those ills pertaining to a weak and inefficient social contract. The Greek post-dictatorial political economic system has been marked by an explosive mix of statism, welfarism, and popular distrust of public institutions that eventually gave way to a downward spiral of state degradation and social degeneration. The country has thus been trapped in a self-enforcing vicious cycle of low state (fiscal and legal) capacity, high policy implementation costs, and depreciating social capital.