What happens if greece leaves the eurozone

But the specter of more exits from the eurozone would undoubtedly make it hard for European leaders to respond to future crises. Already a subscriber? Log in or link your magazine subscription. Account Profile. Sign Out.

Crowds are beginning to gather in the squares of Athens waiting for the official result in Athens, Greece. Tags: greece international affairs greek debt crisis. Most Viewed Stories. The two charges came after Bannon refused to comply with a House subpoena in the investigation into the January 6 riot at the U. Goldbugs were screaming about inflation for years. Most Popular. Black Republicans who share strongly conservative views can paradoxically appeal to white racists as exceptions that prove their so-called rules.

This, however, would deprive the researcher of the opportunity to identify similarities, potentially revealing structural weaknesses of the EU. The two crises of Grexit and Brexit have had a significant negative impact on the integrity and financial and political stability of the EU, revealing legitimacy issues, undermining solidarity and increasing uncertainty and euroscepticism Krugman ; Lunch ; Cox-Brusseau ; Dodman Therefore, avoiding similar incidents is imperative for its prosperity and longevity.

This article is an attempt to identify common patterns in the two crises and examine whether they are linked to institutional inadequacies of the EU, as well as how those inadequacies could be addressed to prevent the emergence of similar disintegration crises.

A similarity between the bailout referendum and the Brexit referendum is that they are both disintegration referendums , according to the definition given by Walter et al. Walter et al. This statement is corroborated by the relevant newspaper articles contemporary of the referendum. Or do they leave and risk unknown financial crisis? The Greek bailout referendum is thus, the first disintegration referendum in the history of the EU.

Based on the characteristics of disintegration referendums given by Walter et al. Neither one of the referendums was held in order to give the government insight to the will of the people and allow for better-informed governmental decisions; both referendums were an attempt of the governing party to diffuse internal disagreement. According to Tsebelis , the PM was aware of the economic and political crisis that the announcement of the referendum would cause and perceived it as the only chance to secure the survival of his government and to ensure that the parliament —mostly the hardliners of his own party- would not vote against a deal with the EU.

Though it is possible that Tsipras considered an increase in his negotiating power a potential benefit of the referendum, domestic politics seem to be the primary reason for his decision. The preceding analysis points to the extensive role of populism in shaping the domestic political dynamics during the Grexit and Brexit crises Marantzidis and Siakas ; Cox-Brusseau ; Kalyvas Bogaards goes as far as to attribute Brexit to a global phenomenon of declining mainstream parties and rising fringe, populist parties.

In fact, those grievances were the negative effects of globalisation, embodied in two crises that struck the EU; the global financial crisis and the migration crisis Boukala and Dimitrakopoulou ; Tsebelis ; Zappettini During both referendums, eurosceptic campaigners presented the EU as the source of the problems —often inaccurately so- Zappettini or worse, as an enemy. This shortfall of the EU is noted by Cox-Brusseau , who points to the inability of the EU to effectively include Eurosceptics in the European integration debate, pushing them further into the political fringes and increasing polarisation.

The negative effects of globalisation, taking a variety of forms economic disparity, identity issues and national pride, immigration crises , were not effectively addressed by national governments, giving birth to status-quo challenging politicians who gained popularity by leveraging the anger of those most affected by globalisation. The EU, having failed to present itself as a solution to the grievances of globalisation, became a convenient scapegoat and failed to reply to the blames directed against it.

The inability of the Union to communicate with its citizens effectively is a weakness exposed by the two crises and manifested in two ways: firstly, disparity in priorities; and secondly, reputational crisis communication. Several academics have argued that issues of high priority in the European agenda, such as feminism, multiculturalism and environmentalism, leave a section of the British population indifferent, thus increasing sentiments of alienation from EU institutions Bourne ; Hobolt The European elites need to understand and address the issues that are salient to all European citizens, especially the more marginalised.

Along with the above, Eurosceptic politicians, to the extent that they represent a section of the population, should be effectively included in the debate about European integration, in order to prevent further polarisation and contain populism Howard and Schmidt ; Cox-Brusseau Apart from the pre-emptive public diplomacy described above, there is need for a defensive crisis communication mechanism in order to tackle disinformation and negative messages in case of a reputational crisis.

It appears that the EU has no established mechanisms of internal reputational crisis management, an issue that needs to be addressed if the EU is to build any reputational resilience. The literature comparatively reviewing the Grexit and Brexit crises is limited. The present work suggests that such an analysis can be revealing about the domestic and international political dynamics of disintegration crises in the EU.

This article focused on the analysis of the two referendums in order to identify common patterns suggestive of shortfalls on behalf of the EU. The two crises are largely attributable to the inability of the EU to successfully present itself as the solution to the problems of globalisation and its inability to counter domestic narratives that portrayed it as the source of the problems of globalisation.

During the Grexit and Brexit crises, the suboptimal communication of the EU with its citizens escalated to a reputational crisis that the EU failed to address and perhaps even comprehend. Addressing this insufficiency of the EU is crucial for the prevention of similar disintegration crises and in order to counter them if or when they do emerge.

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