Pantelis Sklias

The Political Dimension of the Greek Financial Crisis

Many scholars have tried to comprehend and analyse the root causes of the Greek economic crisis. In the majority of these analyses, a series of economic factors were mainly highlighted as the key to understanding the nature of the problem. While these factors are profound aspects of the Greek financial and economic failure, they are only a part of the reality. The root causes for the Greek crisis can be found within the Greek political and institutional model of development and its model of governance. In this paper a series of political factors are highlighted as the key factors of this crisis. The development of statism, the failed Europeanization, the high level of corruption, the impact of syndicates and interest groups on the formation of economic policies, the skewed model of governance, populism and the unstable political and parliamentary regime are the most profound. The Greek crisis has a political element that cannot be overlooked and it is highly different than any other European country. This political element makes us worry about the future of the Greek crisis and the EU.

France, Germany and the New Framework for EMU Governance

Abstract The European crisis is the best case study for examining both the vulnerabilities of Europes framework for economic governance and the very process of European integration itself. This statement is true for several reasons: first, because the European crisis is the most serious crisis the European Union has faced to date; second, because of the crisis, limits on the process of economic integration in Europe have been put to a real test; and third, because the main causes of the crisis are tied into the framework for economic governance that has been developed over the last few decades and therefore are connected to the very process of European unification itself. The primary aim of this paper is to demonstrate whether and to what extent the new framework for economic governance in Europe is largely a result of interstate bargaining and consequently whether national preferences continue to play an important role in the frameworks general transformation. The economic crisis showed that important issues in economic policy concerning the change in economic governance and the role of the nation-state, which were ‘swept under the carpet’ in recent decades, must be resolved to make the European venture viable.

A reputation risk perspective on the Greek crisis

The economic crisis of Europe has realigned the notion of a nations reputation (or its branding) in a prominent way. Using the case of Greece as an example, we interpret the Greek crisis from the fresh perspective of reputation risk management. From this perspective, we show that the Greek crisis, on one hand is deeper and more holistic than the pre-crisis dim macroeconomic outlook would suggest. From the other hand, we suggest that the crisis could have been avoided had reputation risk management been encapsulated as a mechanism for guiding Greeces decision-makers. We infer that, the lack of the equivalent of national-level reputation risk management techniques at the governance echelons is one of the root causes of the crisis and the key catalyst for the rapid escalation of what at first instance appeared to be bad nationwide public financial practices and policy making into a European and nearly global financial event.

The Political Economy of the Greek Crisis in the Framework of the European Monetary Union

In 1991, the Maastricht Treaty was signed in the eponymous Dutch town by all the European member states. This unique project, which was ratified by the last country (Germany) two years later, marked the end of a long road to achieving the European Economic and Monetary Union (EMU). From its earliest beginnings, the European project was a result of intergovernmental bargaining by the most powerful European countries in order to overcome global, regional and national challenges (Moravcsik, 1998; Hosli, 2000). Thus, under these conditions the European Union was strengthened and its common identity was promoted by its most powerful actors.

Culture, politics and economics: dynamics, mechanisms and processes for sustainable development

We argue that culture is an endogenous force of economic development. As such, it should be integrated into the framework of analysis of the dynamics, mechanisms and processes that lead to sustainable development. This shift in contemporary development thought is not random, since the concept of culture has acquired a new dynamism. Development and culture strengthen one another, but also one is a prerequisite for the other. This paper aims at illustrating the need for a composite analysis framework related to the impact of culture on sustainable development, based on dynamics, mechanisms and processes defining the relations between economics and politics, state and market along with values, ideas, principles, perceptions and local culture.

The “Cloud” Europe and Germany as the European Stabilizer

Abstract Since the global economic crisis emerged, the European Union confronts several and substantial challenges in its roots. The fundamental European vision of stability, growth, prosperity and economic convergence seems to be at stake, mainly, by the citizens of the countries that suffer from the consequences of lengthy austerity measures and economic recession. The European Union itself changed since 2009. As the Franco-German axis is crumbling, Germany – even reluctantly for some analysts – became the essential leading force in the EU and hard fiscal policies dazzled bright characteristics of the EU. Intergovernmental controversies are coming at the front of the stage once again. We argue that is time for the European Union to seek for another approach of itself, an approach beyond the narrow intergovernmental processes, beyond even the “spill-over effect” model that guided the monetary unification. The aim of this paper is to draw the “cloud Europe” approach, show its characteristics and attributes. The “cloud Europe” scheme, based upon the “cloud Computing” characteristics from the field of ICTs, can stimulate again the European vision, and revitalize the European cooperation in terms of positive and reliable aspects and not just in terms of heavy fiscal discipline. We use a theoretical adaptation from the ICTs’ area to the political field of the European organization and successful cases of best practices such as the progress of Estonia towards the digital economy and the growth of digital infrastructures. The leading role of Germany in an approach like that can turn the country into a European stabilizer.

Keynes and the Eurozone's Crisis: Towards a Fiscal Union?☆

The majority of the peripheral member states of the Eurozone Portugal, Italy, Spain, and Greece have experienced financial crises. Until now, the European leaders attempted to solve the crises mainly through austerity measures. For them, either it is an ideo logical or a political matter; the answers have identified with the free market beliefs. In this paper, we will argue that until now all the solutions that have been agreed on the European level do not help to solve the root causes of the Greek financial problem. The national governments of the European Union do not follow any of the Keynes ian ideas to overcome the cris is. The European leaders seem to have forgotten their role to act as a policy makers. Under these conditions, even if the Greek financial problem can be moderated, it cannot be solved. The above observation is highly significant for the future of the European Union because every currency union in order to survive needs a mechanism of fiscal transfers. This mechanism does not exist in the Eurozone. Thus, this crisis will continue to affect the performance and function of the EU.

Beyond Nemesis and Salvation: A Reorientation of the Debate on the Greek Economic Crisis

The Greek economic crisis has imperilled the stability of the eurozone, generating much global anxiety. Policymakers, analysts, and the media have daily debated the course of the Greek economy, prescribing ways to move forward. While many European decision makers have expressed faith in the country’s recovery, on the basis of the Second Economic Adjustment Programme and its merits, an increasing number of commentators have questioned the programme’s fundamental assumption—the indispensability of austerity measures amidst the economic recession (Krugman, 2012a; Stiglitz, quoted in Moore, 2012). Some economists have insisted on the need for a European-wide approach to the crisis, with greater institutional steps towards a fiscal union (e.g. Varoufakis, in an interview, Sales, 2012). Others (predominantly German analysts and decision makers) have suggested that, at present, each country should assume primary responsibility for its own problems, so as not to encourage or reward fiscal imprudence and profligacy (e.g. Dieter, 2012). Another strand of the debate concerns Greece’s future in the eurozone. Although most European decision makers tirelessly affirm that the country’s membership in the European Monetary Union is not in question, some analysts have predicted (and recommended) Greece’s exit from the European common currency (Rogoff, in an interview, Boll & Sauga, 2012; Sinn, in an interview, Kaiser, 2012; Roubini, 2012). A few commentators even assert that the country is a ‘lost cause’ or ‘beyond repair’ (Krugman, 2012b; Feldstein, quoted in Michelson, 2012). Apparently, most pessimistic economic analyses refer to the main deficiencies of the Greek economy, namely, low competitiveness and productivity, red tape, large-scale corruption, an extensive shadow economy, and a bloated and inefficient public sector. More importantly, they direct attention towards the country’s insufficient progress in implementing certain structural reforms.

Reassessment of the OCA criteria in the Euro area: the case of Greece

The Greek crisis should not be considered an unexpected phenomenon. On the contrary, it has been caused by, among other things, rushed political decisions, incomplete EU institutions of governance and hidden political and economic causes. We analyse the optimality and effectiveness of the European monetary framework on two different levels: first by applying the OCA criteria to the EMU and second, by evaluating the main political and economic institutions and their vulnerabilities within the European level. We claim that many European countries, including Greece and other countries of Southern Europe remain unable to afford the vulnerable and one-sided, weak political and economic European monetary context. Additionally, we claim that unless deep governance structures emerge, a possible enlargement of the Eurozone could create more costs than benefits for both the candidate members and the Eurozone itself.

IAS for SMEs Adoption: Evidence from the Regions of Kavala and Serres, Greece

This paper examines the adoption and implementation of IFRS by SMEs in the regions of Kavala and Serres, Greece. Our main objective is to examine the possibility of direct implementation of the International Accounting Standard for SMEs. Through empirical analysis and in accordance with the literature review, we set the main factors that affect business decision to implement IFRS/IAS.