Essay on Greek EU Membership: Pros & Cons of Economic Integration

Introduction

The decision by Greece to join the European Union at the time seemed like a good gamble owing to the many benefits it would reap from economic integration. However, a growing national debt has put Greece in a precarious position with the EU doing little to salvage the situation. Although Greece was set to benefit from the advantages of economic integration, poor decisions led to a national debt that has crippled the economy of the country.

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Benefits of Greece as a Member of the European Union

By joining the European Union, Greece opened its borders to increased trade. With 27 members in the EU, Greece created a market for its exports. The union reduces trade barriers among member countries, thus encouraging the exchange of goods and services. Similarly, Greece has also benefited from goods and services from other countries. This integration has allowed Greece to benefit from the pool of talent from other countries. Greece has also benefited from innovation and advancement in technology from other members of the union.

Greece has also enjoyed a peaceful tenure due to the reduced risk of conflicts. As a member of the European Union, Greece is guaranteed the support of all other member countries. This support has helped Greece ensure it has remained peaceful over the years.

The Downside to Membership of Greece to the European Union

Despite the many benefits of being a member of the EU, Greece made a series of bad decisions that led to its economic deterioration. Due to corruption and poor management, the national debt of Greece increased drastically. It was an advantage that Greece could borrow from the union to finance its growth. However, the debt was so significant that at some point, Greece threatened to default.

The European Union, instead of coming to the rescue of Greece by forgiving part of the debt, imposed austerity measures to help in the recovery of the debt (Amadeo, 2019). As a member of the EU, Greece lost control over its monetary policy. Austerity measures imposed by the EU reduced the spending of the country by significantly cutting on the wages and salaries (Amadeo, 2019). These measures greatly reduced the standard of living of citizens of Greece. Pensions were also cut significantly, affecting those who benefited from them. The austerity measures further increased avenues of gaining more revenue. Therefore taxation rates were increased, making life for its citizens unbearable. As a result of economic integration, Greece has paid the price. As a member of the EU, Greece has been forced into a situation that it cannot back out of easily without ramifications. The policies of the EU have not favored Greece. Bailouts given to Greece have come with extreme conditions that have continued to ensure the country remains in debt.

Conclusion

Greece may have benefited from the advantages of being a member of the EU. However, once it got itself into a problem due to its debt, the disadvantages of economic integration have become visible. As a result, the disadvantages have outweighed the advantages, making a case for Greece to pull out of the European Union.

Reference

Amadeo, K. (2019, Dec. 4). Greek debt crisis explained. The Balance. https://www.thebalance.com/what-is-the-greece-debt-crisis-3305525