IDEAS home Printed from https://ideas.repec.org/a/taf/rripxx/v23y2016i5p799-824.html
   My bibliography  Save this article

Negotiating Greece. Layering, insulation, and the design of adjustment programs in the Eurozone

Author

Listed:
  • Manuela Moschella

Abstract

The paper sets out to explain why the European Central Bank and the European Commission relaxed their opposition to debt restructuring and fiscal accommodation for Greece in the shift from the first to second adjustment program. Using the findings of the empirical analysis, the paper shows that EU institutions’ repositioning cannot easily be ascribed to the mechanisms that are typically at play in international negotiations, namely exogenous pressures and internalization of new beliefs through persuasion. Instead, the paper argues that a more nuanced and complete explanation of the relaxation of opposition to the change in the program strategy requires taking into account the institutional and temporal dimensions of the Troika negotiations. Specifically, the paper shows that the evolution of European actors’ preferences was shaped by the layering of new crisis management rules into the machinery of the monetary union. Layering allowed political actors in favor of the status quo achieving their preferences under changed external circumstances.

Suggested Citation

  • Manuela Moschella, 2016. "Negotiating Greece. Layering, insulation, and the design of adjustment programs in the Eurozone," Review of International Political Economy, Taylor & Francis Journals, vol. 23(5), pages 799-824, September.
  • Handle: RePEc:taf:rripxx:v:23:y:2016:i:5:p:799-824
    DOI: 10.1080/09692290.2016.1224770
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09692290.2016.1224770
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09692290.2016.1224770?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jean Pisani-Ferry & André Sapir & Guntram B. Wolff, . "EU-IMF assistance to euro area countries- an early assessment," Blueprints, Bruegel, number 779, June.
    2. Simeon Djankov, 2014. "Inside the Euro Crisis: An Eyewitness Account," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6857, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Steininger, Lea & Hesse, Casimir, 2024. "Buying into new ideas: The ECB’s evolving justification of unlimited liquidity," Department of Economics Working Paper Series 357, WU Vienna University of Economics and Business.
    2. Giancarlo Corsetti & Aitor Erce & Timothy Uy, 2017. "Official Sector Lending Strategies During the Euro Area Crisis," Discussion Papers 1720, Centre for Macroeconomics (CFM).
    3. Giancarlo Corsetti & Aitor Erce & Timothy Uy, 2020. "Official sector lending during the euro area crisis," The Review of International Organizations, Springer, vol. 15(3), pages 667-705, July.
    4. Angelos Angelou, 2023. "Dysfunction and Pathology in Brussels: The European Commission and the Politics of Debt Restructuring," Journal of Common Market Studies, Wiley Blackwell, vol. 61(4), pages 1082-1099, July.
    5. Cui, Wei, 2017. "Macroeconomic effects of delayed capital liquidation," LSE Research Online Documents on Economics 86156, London School of Economics and Political Science, LSE Library.
    6. Lea Steininger & Casimir Hesse, 2024. "Buying into new ideas: The ECB’s evolving justification of unlimited liquidity," Department of Economics Working Papers wuwp357, Vienna University of Economics and Business, Department of Economics.
    7. Schreiber, Tim, 2017. "Post-crisis economic policy coordination in the EU: The European Semester as trigger for the Europeanization of national policies? An analysis of the European Semester's impact on French environmental," PIPE - Papers on International Political Economy 29/2017, Free University Berlin, Center for International Political Economy.
    8. Piroska, Dóra, 2017. "Funding Hungary: Exposing Normal and Dysfunctional Crisis Management," Corvinus Economics Working Papers (CEWP) 2017/01, Corvinus University of Budapest.
    9. Manuela Moschella & Nicola M Diodati, 2020. "Does politics drive conflict in central banks’ committees? Lifting the veil on the European Central Bank consensus," European Union Politics, , vol. 21(2), pages 183-203, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giancarlo Corsetti & Aitor Erce & Timothy Uy, 2017. "Official Sector Lending Strategies During the Euro Area Crisis," Discussion Papers 1720, Centre for Macroeconomics (CFM).
    2. C. Randall Henning, 2019. "Regime Complexity and the Institutions of Crisis and Development Finance," Development and Change, International Institute of Social Studies, vol. 50(1), pages 24-45, January.
    3. Ansgar Belke & Daniel Gros & Alcidi Cinzia & Leonor Coutinho & Alessandro Giovannini, 2014. "Exit State-of-play in Implementing Macroeconomic Adjustment Programmes in the Euro Area," ROME Working Papers 201405, ROME Network.
    4. Cassola, Nuno & Jorge, José, 2016. "The ECB's OMTs: A tale of governments, investors, and the central bank," Journal of International Money and Finance, Elsevier, vol. 65(C), pages 94-116.
    5. Fritz Breuss, 2013. "Die Größe der Kleinen in der EU," WIFO Working Papers 452, WIFO.
    6. Saker Sabkha & Christian Peretti & Dorra Hmaied, 2019. "The Credit Default Swap market contagion during recent crises: international evidence," Review of Quantitative Finance and Accounting, Springer, vol. 53(1), pages 1-46, July.
    7. Deborah Mabbett & Waltraud Schelkle, 2015. "What difference does Euro membership make to stabilization? The political economy of international monetary systems revisited," Review of International Political Economy, Taylor & Francis Journals, vol. 22(3), pages 508-534, June.
    8. Eichengreen, Barry & Jung, Naeun & Moch, Stephen & Mody, Ashoka, 2014. "The Eurozone Crisis: Phoenix Miracle or Lost Decade?," Journal of Macroeconomics, Elsevier, vol. 39(PB), pages 288-308.
    9. Elena Bobeica & Paulo Esteves & António Rua & Karsten Staehr, 2016. "Exports and domestic demand pressure: a dynamic panel data model for the euro area countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 107-125, February.
    10. Barbara Fritz & Sebastian Dullien & Laurissa Muehlich, 2015. "The IMF to the Rescue: Did the Euro Area benefit from the Fund’s Experience in Crisis fighting?," Competence Centre on Money, Trade, Finance and Development 1601, Hochschule fuer Technik und Wirtschaft, Berlin.
    11. Robert L. Hetzel, 2015. "A Comparison of Greece and Germany: Lessons for the Eurozone?," Working Paper 15-4, Federal Reserve Bank of Richmond.
    12. Wei Cui, 2017. "Macroeconomic Effects of Delayed Capital Liquidation," Discussion Papers 1719, Centre for Macroeconomics (CFM).
    13. Gros, Daniel & Alcidi, Cinzia & Belke, Ansgar & Coutinho, Leonor & Giovannini, Alessandro, 2014. "State-of-play in implementing macroeconomic adjustment programmes in the euro area," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100407, Verein für Socialpolitik / German Economic Association.
    14. Cristina Arellano & Andrew Atkeson & Mark Wright, 2016. "External and Public Debt Crises," NBER Macroeconomics Annual, University of Chicago Press, vol. 30(1), pages 191-244.
    15. Gros, Daniel & Alcidi, Cinzia & Belke, Ansgar & Coutinho, Leonor & Giovannini, Alessandro, 2014. "Implementation of the Macroeconomic Adjustment Programmes in the Euro Area: State-of-Play," CEPS Papers 9017, Centre for European Policy Studies.
    16. Theodoros S. Papaspyrou, 2015. "EMU 2.0 Drawing Lessons From the Crisis - a New Framework For Stability and Growth," Working Papers 192, Bank of Greece.
    17. repec:erc:cypepr:v:7:y:2014:i:2:p:53-80 is not listed on IDEAS
    18. Petralias, Athanassios & Petros, Sotirios & Prodromídis, Pródromos, 2013. "Greece in recession: economic predictions, mispredictions and policy implications," LSE Research Online Documents on Economics 52626, London School of Economics and Political Science, LSE Library.
    19. Dermot Hodson, 2015. "The IMF as a de facto institution of the EU: A multiple supervisor approach," Review of International Political Economy, Taylor & Francis Journals, vol. 22(3), pages 570-598, June.
    20. Saker Sabkha & Christian De Peretti & Dorra Hmaied, 2017. "The Credit Default Swap market contagion during recent crises: International evidence," Working Papers hal-01572510, HAL.
    21. Giancarlo Corsetti & Aitor Erce & Timothy Uy, 2020. "Official sector lending during the euro area crisis," The Review of International Organizations, Springer, vol. 15(3), pages 667-705, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rripxx:v:23:y:2016:i:5:p:799-824. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rrip20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.