chapter  1
16 Pages

The European Union as a dualist political economy: Understanding core–periphery relations

ByJOSÉ M. MAGONE, BRIGID LAFFAN, CHRISTIAN SCHWEIGER

The sovereign debt crisis made Greece the focal point of the Eurozone in 2010. Modern Greece is being torn apart by political and ideological paralysis, whereby its political establishment is unable to effectively address the economic and financial crisis. Prior to the Troika's engagement with Greece, the major structural weaknesses of Greece included unsustainable fiscal policies and excessive public expenditures that led to persistent deficits and high debt-to-GDP ratios. The interest rate paid by Greece for the IMF loan remained at 3.3 per cent. At the beginning of 2015, Greece numbered among the EU programme countries paying the lowest interest rates. The Task Force played the role of a liaison between the Greek authorities and other EU member states and was meant to provide technical assistance in the form of recommendations on legislative, regulatory and administrative programming measures related to the disbursement of EU funds.