The Greek Crisis and the Crisis in Eurozone's Governance (original) (raw)

The Greek crisis has exposed significant structural and functional deficiencies in the governance system of the Eurozone, leading to both a Greek crisis and a broader crisis in Eurozone governance. Central to the governance failings are the limitations of the common monetary policy, the lack of consistent macroeconomic policy due to the separation of monetary and fiscal responsibilities across member states, and the inability to effectively implement countercyclical measures. Although new support mechanisms have provided temporary relief, sustainable solutions require deeper integration of economic policies and a supportive approach to crisis management, focusing on reform and long-term growth rather than punitive measures.