ABSTRACT
This chapter addresses the position of Greece in the eurozone crisis. In particular, it focuses on the structural imbalances and internal contradictions of the Economic and Monetary Union. The main argument is that the global financial crisis hit Member States in differing ways, acting as an asymmetric shock due to the structural differences between the euro area states. The chapter is concerned with the issues, starting with addressing the unfolding of the eurozone crisis and its nature. It assesses the extent to which Greece faced competitiveness threats exacerbated by the outbreak of the global crisis. The risks identified inside the financial system included the possibility of more volatility of financial markets in the case of a lacking macroeconomic recovery. The most important measure of competitiveness, and the one that is often quoted in the literature is given by Unit Labour Cost.
