Analysis of EU Governance: Greece's Economic Crisis and Solutions

This report provides an in-depth analysis of the governance of the European Union, with a specific focus on the economic challenges faced by Greece. It examines Greece's integration within the EU, highlighting the country's economic issues, including the debt crisis, crime and security concerns, and weak foreign policies. The report explores the current status of Greece, its international relations, particularly with Turkey, and the impact of these relationships on its economic stability. Furthermore, the report proposes potential alternative measures that the EU could adopt to support Greece, such as financial aid, improved trade policies, and enhanced international collaborations. The analysis includes recommendations for improving Greece's economic standing within the EU, emphasizing the importance of effective fiscal and monetary policies and strong international relations to overcome its economic challenges. The study utilizes various sources to provide a comprehensive overview of the situation, aiming to offer insights into the complexities of EU governance and the economic struggles of its member states.

GOVERNANCE OF THE EUROPEAN
UNION

Executive summary
European Union Member States are part of Economic and Monetary Union (EMU) and
coordinate their economic policy-making to support the economic aims of the EU. Report
includes problems of Greece economy crises and policies issue. Alternative measures that EU is
adopting for improving relationship with other nations and improving its condition are
maintained in this study.

Table of Contents
INTRODUCTION...........................................................................................................................1
POSITION PAPER..........................................................................................................................1
Identification of interest, origins and current status....................................................................1
Possible alternative measures that EU can adopt........................................................................3
International relations of country................................................................................................4
Recommendation.........................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Governance in European Union is in flow where power gets transferred from one
member state to EU union (Jeffery, 2015). Continuously increasing economic trends stunt the
growth of nation and due to this economic risk are in creasing on the country. Present study is
based on the Greece country. It will describe interest, problems and current status of Greece.
Position paper will explain the possible alternatives that EU can adopt in order to resolve
conflicts or problems. Furthermore, study will discuss the international relations of the nation
and how it affect country's aim (Benington, 2013). At the end of paper recommendation will be
given so that region can meet with its objectives.
POSITION PAPER
Identification of interest, origins and current status
European Union can be considered as group of 28 political and economic states which are
primarily located in the Europe. An internal single market has been developed by EU with the
help of standardised system of laws. Its main aim is free movement of goods, services and capital
within the European market. It always wants to expand their boundaries through accession of
new member states (Telò, 2014). EU has been designed with the purpose of developing business
relations with other countries so that economy condition of the nation can be improved and they
can support each other in their economy slow down time duration.
Greece is the member state of European Union, it is the country which is located within
southeastern Europe. It is the member country of EU since 1st January 1981. It has 21 seats in the
European parliament (Cini, 2016). Main export partners of the region are Italy, Germany and
Turkey. On pother hand goods get imported from Germany, Italy and Russia. Greece economy is
much more depended upon the wholesale, retail, food services and transportation sectors. Issues
with the Greece are as following: Greek government debt crises: It is one of the main issue or problem which is currently
faced by the Greece (Nugent, 2017). It was started in the year 2009 which has created
recession situation in the nation and has made economy position of the region weaker.
After getting support from monetary funds still it has not grown that has reduced
confidence of potential creditors.
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 Crime or security issues: It is another issue in the Greece. It is safe place but theft of
passports are very high (Geddes, Lees and Taylor, 2013). Recent report shows that person
is responsible for its personal security. But Still security department is very attentive and
taking photographs in some places are prohibited here.
 Week foreign policies: Greece is having ineffective policies that creates tension for the
Turkey and other nation and they become unable to achieve their aim effectively.
Illustration 1: Greece economy condition
Source: (UNHCR redefines role in Greece as EU-Turkey deal comes into effect,
2016)
Current status
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Greece is popular for stable parliamentary democracy. Though there is economic crises
situation and financial system of the country is fragile (Reh and et.al, 2013). Economic
difficulties and related demonstrations create problem for the cited member state. Debt of the
nation is too high and IMF and eurozone government both have different opinion about the
economic condition of the country. Shaking economy circumstances of the Greece has recovered
in the first quarter (Boin, Ekengren and Rhinard, 2013). Fixed investments, private consumption
have helped the Greece in improving its situation. As per the records of quarter 2, creditors of the
nation have given the Greece green light and risk of default on debt payments has been
removed. Now EU is concern for the future financing needs and trying to enhance its currency
value.
Possible alternative measures that EU can adopt
European union plays significant role in improving the condition of any country which is
included under its membership. There are many member states those which want to make trade
agreements with the Greece (Turkey and the European Union, 2014). It has strong relationship
with Italy. EU can provide financial support to this country so that it can pay its debt on time and
can resolve financial crises issues. Greece has strong bonding with Italy, it can increase its export
business and can resolve its economic problems. EU can also build relationship with any other
nations as well, it will help in boosting its trade thus foreign currency will be increased in the
Greece that would resolve crises situation of the nation significantly (EU Pressures Greece to
Resolve Issues as New Debt Crisis Looms, 2017).
Greece principle problem can be resolved by making good policies. It would help in
improving condition the condition of nation. Effective fiscal and monetary polices can be better
option for the country because it would help in resolving the issues of the region soon. EU can
make effective practices and policies for the Greece through which it can resolve its troubles
related to trade and exports (UNHCR redefines role in Greece as EU-Turkey deal comes into
effect, 2016). By this way it will be able to build strong relationship with the other nations that
would help in increasing export contract of the country. When EU has modified its policies in the
year 2001 after that Greece has meet with credit boom and has got benefited from 2001 to 2008.
On other hand explosion in the domestic demand has made Greece's export too much expensive
in the international market. Thus, improvement in the policies and trade practices will help the
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nations in resolving its issues and meeting with the objectives (The Effect of New Turkish
Foreign Policy on International Trade, 2012).
EU has many options available in order to deal with Turkey so that relationship between
Turkey and Greece can be improved soon. Greece is suffering from high debt and it is unable to
repay its creditors on time. EU plays significant role in this respect because European union can
arrange emergency loan for the country so that it can minimize its debt can can expand its
business operations (Turkish Energy Security Under Threat, 2016).
International relations of country
Turkey can be considered as powerful member state of European Union. International
relationship with other countries ca increase foreign reserves in the nation and can make its
economy more strong. Turkey can be considered as one of the major international regional actor.
Activities of Turkey such as Cyprus issue, Iraq, Iran, Energy security etc. impact on the Greece
to great extent (Issues of Greek - Turkish Relations, 2017). Due to security issues of Turkey its
imports get affected and Greece become unable to export goods and services smoothly. That is
why it does not get payment on time.
Greece is aiming to make its economy more strong and it wants to increase its trade
across the world. Turkey was involved in illegal occupational troops and has refused to withdraw
from it which has rendered Cyprus across the world. At that time Turkey was violating the rights
of refugees and missing persons (European Union, 2017). Due to this security of other nation
have got affected. Greece and many more countries have strong relationship with the Turkey but
this Cyprus issue has affected its security as well. By this way tourism business of the nation got
affected that has reduced foreign reserve on the region.
Energy security is another problem in the Turkey and government of the nation is trying
to ensure that border of the country keeps safe. When fighting got started than places which were
near the turkey where approx 3000 PKK militants got died )Turkey and the European Union,
2014(. And after that curfew situation got arisen in the country, due to this most of the nations
were unable to get their orders on time. That has negatively impact on the import business and
due to this imbalance between demand and supply has been created. It has affected most of the
manufacturing and other business and it was the huge loss for other nations those which were
depended on turkey due to raw material. Same as in the curfew situation Turkey was not
exporting any material from Greece and it has given huge finance loss to the cited nation and that
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has increased burden ion the government of the region (UNHCR redefines role in Greece as EU-
Turkey deal comes into effect, 2016).
Recommendation
There are several ways through which relationship of Turkey and Greece can be
improved soon.
 It can improve its trade polices and while making the policies it can consider norms of
both nations. It will help in making strong relationship with the other nations. Greece is
suffering from economic crisis's situation which is increasing debt of the nation. Due to
this it sis unable to deal with other countries that is why creditors are not trusting on the
nation. That is why people most of the countries are feeling afraid in investing amount in
this location. But effective trade polices will help to reduce its crises condition and it will
build strong relationship with turkey and other nations.
 By increasing the credibility through accession process Greece can turn into developed
nation and can resolve its economic issues soon.
CONCLUSION
From the above report it can be concluded that Week foreign policies, Crime or security
issues, Greek government debt crises are major problems in the Greece. All EU member states
work effectively and their relationship helps in improving their economy condition and resolving
their issues.
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REFERENCES
Books and Journals
Benington, J., 2013. Local Partnership and Social Exclusion in the European Union: New
Forms of Local Social Governance?. Routledge.
Boin, A., Ekengren, M. and Rhinard, M., 2013. The European Union as crisis manager:
Patterns and prospects. Cambridge University Press.
Cini, M., 2016. European union politics. Oxford University Press.
Geddes, A., Lees, C. and Taylor, A., 2013. The European Union and South East Europe: The
Dynamics of Europeanization and Multilevel Governance. Routledge.
Jeffery, C., 2015. The regional dimension of the European Union: towards a third level in
Europe?. Routledge.
Nugent, N., 2017. The government and politics of the European Union. Springer.
Reh, C. and et.al., 2013. The informal politics of legislation: Explaining secluded decision
making in the European Union.Comparative Political Studies. 46(9). pp.1112-1142.
Telò, M., 2014. European union and new regionalism: competing regionalism and global
governance in a post-hegemonic era. Ashgate Publishing, Ltd..
Online
EU Pressures Greece to Resolve Issues as New Debt Crisis Looms, 2017. [Online] Available
through: <https://www.bloomberg.com/news/articles/2017-03-20/greece-edges-toward-
another-crisis-as-bailout-quarrel-persists>. [Accessed on 14th July 2017].
European Union, 2017. [Online] Available through: <https://europa.eu/european-union/about-
eu/countries/member-countries/greece_en>. [Accessed on 14th July 2017].
Issues of Greek - Turkish Relations, 2017. [Online] Available through:
<http://www.mfa.gr/en/issues-of-greek-turkish-relations/>. [Accessed on 14th July 2017].
The Effect of New Turkish Foreign Policy on International Trade, 2012. [Online] Available
through: <http://www.insightturkey.com/the-effect-of-new-turkish-foreign-policy-on-
international-trade/articles/356>. [Accessed on 14th July 2017].
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Turkey and the European Union, 2014. [PDF] Available through:
<https://www.brookings.edu/wp-content/uploads/2016/06/Turkey-and-the-European-
Union.pdf>. [Accessed on 14th July 2017].
Turkish Energy Security Under Threat, 2016. [Online] Available through:
<http://oilprice.com/Energy/Energy-General/Turkish-Energy-Security-Under-
Threat.html>. [Accessed on 14th July 2017 ].
UNHCR redefines role in Greece as EU-Turkey deal comes into effect, 2016. [Online] Available
through: <http://www.unhcr.org/uk/news/briefing/2016/3/56f10d049/unhcr-redefines-role-
greece-eu-turkey-deal-comes-effect.html>. [Accessed on 14th July 2017].
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