The First Eurozone Crisis : Structural Change, Extreme Peripherality and a Structural Core-Periphery Mechanism

Τhe first Eurozone crisis has increased core-periphery imbalances at the EMU, as expected from theory. It was followed by a significant structural change, through laying down the foundations for a Banking, Fiscal and Capital Markets Union. Using GNI per capita and employment indexes from 2009 to 2019, Greece’s strong divergence is unveiled and explained, despite the application of sequential IMF adjustment programs. A structural core-periphery mechanism is illustrated, taking into account this peculiar case of extreme peripherality at the Eurozone and the degree of integration. Its operation and EU-wide stability could be achieved through private-sector investments that will advance necessary Greek economic restructuring