The Future of Economic Dependence

As this volume is being written, geopolitical conflict undermines international collaboration; wars are raging in many places, and a new US administration seems committed to policies that appear likely to undermine old alliances and create more economic uncertainty. In addition, long-term changes in technology and climate are forcing change whether societies like it or not. In this very challenging environment, Greece must consider the policies involving its links to and economic dependence on the European Union that will promote equitable and sustainable economic growth. This chapter summarizes recommendations on two aspects of this multifaceted dependence, trade and finance. It also explores the implications of the Greek experience for other small countries in Europe’s periphery considering membership or emerging economies elsewhere in the world considering economic integration. On trade, inter alia, EU membership can give Greece cover to and counter new protectionism initiated by the new US administration. Greece’s EU membership should be helpful in raising the level of public sector investment needed for long-term sustainable growth. It will also yield obvious benefits, as the EU moves closer to becoming a true banking union. The volume concludes that there is no option but for Greek governments to ensure that they learn from the lessons of the past and work with their European counterparts to strengthen European integration and institutions.