Crisis Politics in Europe: Vulnerability to Adjustment, Policy Responses and Political Conflict

The Euro crisis has turned into one of the most serious challenges that the European Union (EU) has had to face so far. At its root the crisis is a balance-of-payments crisis; caused by divergent economic developments among member states in the pre-crisis years and the deep financial integration that accompanied this process.

Who is to Blame for Austerity and its Consequences in Greece?

By the end of the crisis, Greece will have lost about 27-30% of its economic output. This sort of disaster is usually seen only after wars and biblical events –but who is to blame in this case since God and the generals had presumably nothing to do with it? A popular cause is “austerity forced upon Greece by international institutions”. This is doubly flawed.