Costas Simitis
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Conflicts at the highest European level
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The chapter discusses the spreading of the Eurozone crisis to Italy, leading to the formation of the Monti government in November 2011. The uncertainty over Italy was compounded by fears that the firepower of the EFSF would not suffice in case Italy needed rescue. The launch of the Fiscal Pact and the accelerated entry into force of the European Stability Mechanism were meant to calm fears over the ability of the Eurozone to respond to future iterations of the crisis. Yet, the opting out of the UK from the Fiscal Pact and its apparent intergovernmental nature, created sceptism over the institutional design of economic governance in the Eurozone.

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The European debt crisis

The Greek case

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