The financial crisis hit the European shores with clear adverse effects on production, GDP, employment and growth. The eruption of the Greek crisis threatened to hit the EU right at its foundation. It tested the endurance of its institutions and the limits of its political will.
It raised questions of trust and betrayal, effectiveness and free-riding, and even on the strength of the Eurozone. But, I believe that the Greek crisis, and European response to it, highlighted all kinds of shortcomings but also brought to the fore many of Europe’s strengths.
The Greek financial crisis exposed the Greek governments’ chronic deficiency in exercising an efficient economic policy. It exposed its shortcomings both in dealing with important obligations that stem from the country’s participation in the EU’s Economic and Monetary Union, and in exploiting related opportunities for economic growth and restructuring. We were faced with chronic problems of mismanagement, lack of transparency and decreasing competitiveness.