Shifting Power Relations and Divisive Policy Choices: EU Decision-making regarding the Greek Sovereign Debt Crisis

This paper analyses the shifting power relations between and within EU institutions and the impact of these shifts on the processes and outcomes of decision-making. The central hypothesis is that, on the one hand, the European Commission has, to a far-reaching extent, lost its power to shape European decisions in substantial terms, embedded in its right of initiative; on the other hand, the Council and particularly the European Council are less involved in intergovernmental bargains, but take decisions under the dominance or even hegemony of the most powerful states, particularly Germany. By analyzing the decisions regarding the Greek sovereign debt crisis, the paper concludes that EU policy choices are increasingly induced by partisan national interests, insufficiently reflect the European common good, transform the political culture of the EU and violate democratic standards at the European and national government levels.