Germany and Greece in the Eurozone Crisis from the Viewpoint of the Neo-Neo Debate

Abstract

This study looks to analyse to what extent the neorealism versus neoliberalism debate contributes to understanding the complexity of the European Union's institutionalization, focusing on the impacts of the 2008 financial crisis and the asymmetries between Germany and Greece. How far can Greece be considered guilty for its situation and how far is Germany involved both in the cause and in the resolution of this crisis? To answer these questions, a brief analysis of the European Union's formation and of both countries' macroeconomic indicators and competitiveness is presented. The article also discusses the increasing institutionalization of the International System and the complex interdependence created within the European Union. It argues that increased European cooperation has deep-lying neorealist motivations and that the world financial regime's pandemic dynamics makes evident the asymmetrical interdependence between Germany and Greece. Economic disparities between the two nations are determinant factors in their respective behaviours prior to the 2008 crisis.