PALGRAVE STUDIES IN EUROPEAN UNION POLITICS Series Editors: Michelle Egan · Neill Nugent William E Paterson THE GRECOGERMAN AFFAIR IN THE EURO CRISIS Mutual Recognition Lost? Claudia Sternberg Kira Gartzou-Katsouyanni Kalypso Nicolaïdis Palgrave Studies in European Union Politics Series Editors Michelle Egan American University Washington, DC, USA Neill Nugent Manchester Metropolitan University Manchester, UK William E Paterson Aston University Birmingham, UK “This is a superb account The political dynamics the authors uncover will shape the process of European integration in years to come, and anyone who cares about Europe’s future will learn from reading this book.” —Matthias Matthijs, Johns Hopkins University, USA “This is a short book, but a big book The authors provide a very fruitful lens on the destructive dynamic of the crisis and the need to repair and build on mutual recognition in the EU.” —Brigid Laffan, Director, Robert Schuman Centre for Advanced Studies, European University Institute, Italy “This short book packs a powerful punch that provides an original lens through which to explore how Europeans understand each other and themselves This book is a must read for anyone interested in how the European Union has reached the precipice and how it might find its way back.” —Vincent della Sala, University of Trento, Italy Following on the sustained success of the acclaimed European Union Series, which essentially publishes research-based textbooks, Palgrave Studies in European Union Politics publishes cutting edge research-driven monographs The remit of the series is broadly defined, both in terms of subject and academic discipline All topics of significance concerning the nature and operation of the European Union potentially fall within the scope of the series The series is multidisciplinary to reflect the growing importance of the EU as a political, economic and social phenomenon More information about this series at http://www.springer.com/series/14629 “This innovative book illuminates key challenges around the cultural construction of a shared Europe … A must read.” —Kathleen R McNamara, Georgetown University, USA “Dominant visions of European integration are still informed by a diplomatic perspective This most timely book tells a different story, in which discourse, symbols and emotions play a major role This new approach will be of great help in understanding the European response to the challenges it currently faces.” —Renaud Dehousse, President, European University Institute, Italy “This book is essential reading for anyone who seeks to look beyond the many stereotypes to understand where Europe has been and where it is headed.” —Erik Jones, Johns Hopkins University, USA “This fascinating short book transcends intellectual boundaries The authors plea for a transformation of mind-sets and behaviour by using mutual recognition as a main political compass to navigate the EU through its future challenges An inspirational and entertaining read for all European citizens—among them, hopefully, many of its politicians.” —Hartmut Mayer, University of Oxford, UK “This interrogation of a Greek-German love affair turning sour offers both a newly insightful perspective on the cultural hinterland of sovereign debt crisis, and a hope for the future The authors offer an unparalleled advance in the creation of a shared narrative which can and does (at least, sometimes) re-write our histories.” —Michelle Everson, Birkbeck College, USA, and Christian Joerges, Hertie School of Governance and Centre of European Law and Politics, Bremen, Germany Claudia Sternberg Kira Gartzou-Katsouyanni Kalypso Nicolaïdis The Greco-German Affair in the Euro Crisis Mutual Recognition Lost? Claudia Sternberg European Institute University College London London, UK Kira Gartzou-Katsouyanni European Institute London School of Economics London, UK Kalypso Nicolaïdis Department of Politics and International Relations University of Oxford Oxford, UK Palgrave Studies in European Union Politics ISBN 978-1-137-54750-7 ISBN 978-1-137-54751-4 (eBook) https://doi.org/10.1057/978-1-137-54751-4 Library of Congress Control Number: 2017951562 © The Editor(s) (if applicable) and The Author(s) 2018 The author(s) has/have asserted their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover credit: © Melisa Hasan Printed on acid-free paper This Palgrave Pivot imprint is published by Springer Nature The registered company is Macmillan Publishers Ltd The registered company address is: The Campus, Crinan Street, London, N1 9XW, United Kingdom To Alma and Ada, both born as we were writing this book, José and Stelios, Kalypso’s German and Greek parents, and Kira’s teachers and family in Athens, for teaching her to stand in other people’s shoes Preface This small book is a call for transformation Transformation of mindsets and behaviours Transformation is the way we gaze at others close or far away, starting with the neighbours with whom we share our small crowded tip of the Eurasian continent It is also the product of trans-European friendships We all three are somewhat hybrid women, whom the philosopher Anthony Appiah would call rooted cosmopolitans Between us, we cover seven European languages and almost as many nationalities We may yet qualify as citizens of the world but we also believe that struggles for recognition start at home We hope that the story we tell in the following pages might contribute to the slaughtering of one of our worse European demons: demonisation London, UK Oxford, UK London, UK July 2017 Kira Gartzou-Katsouyanni Kalypso Nicolaïdis Claudia Sternberg vii Acknowledgements We wish to thank Achim Hurrelmann, Frank Wendler and the participants of the workshop “Crisis Contained, Democracy Diminished?” at Carleton University in September 2014; Simona Piattoni, Claudius Wagemann and the attendees of the workshop “Amici Come Prima?” at Villa Vigoni in April 2017; and Eric Monnet for thoughtful comments on earlier drafts of parts of this book, as well as our series editor Willie Paterson for his inspiration and patience We gratefully acknowledge the valuable assistance of Angelos Angelou and Philip Schnattinger in helping us to construct the timeline, and of Sofia Singler and Max Sternberg with our images Claudia Sternberg would like to thank Uta Staiger for her generosity as a colleague Kira Gartzou-Katsouyanni is grateful to Erik Jones for giving her the opportunity to conduct empirical research for this project and for providing valuable feedback in the context of his European Research Seminar at SAIS Bologna, Johns Hopkins University It goes without saying that we accept all responsibility for any errors and omissions ix Contents The Setting: The Greco-German Affair on the Euro Stage 1.1 The Foundation of European Demoicracy 1.2 The Greco-German Affair and the Battlefield of Stories 1.3 Mutual Recognition and Its Denial 1.4 Rebuilding Trust Notes 12 The Players: Greeks vs Germans 19 2.1 Of Greek Squanderers and German Misers 21 The Good Life 21 Conflicted Cheapskates 24 Inequalities and Suffering 25 The Age of the Lobster Pasta 26 Blame Games 28 Greece, Relentless Mirror 30 2.2 Swindlers vs Hearts of Steel: Moralities of Rule of Law, Public Spirit, and Solidarity 31 Greek Diseases 32 Only Greeks? 33 A Liar Will not Be Believed 35 The Two Greeces 36 Playing by the Rules 38 Solidarity 39 xi xii Contents 2.3 Greece Mirror of German Demons 42 Bankruptcy Greeks 43 Traumas Resonating 44 2.4 Your History, My History 46 Heir of Antiquity vs Err of Antiquity, and the War of Clichés 47 German Guilt, German Debt, German Responsibility 51 Lost in Translation 55 Mirror, Mirror on the Wall 56 Greek Historical Memory Revised 60 2.5 Power and Resistance 61 German Despots and Their Greek Collaborators 62 The Power of the Weak 63 The Reluctant Hegemon 66 With Great Power Comes Great Responsibility 68 Notes 72 The Name of the Game: Shaping Europe Through Self and Other 83 3.1 A Union of Prosperity? 84 From Promise to Threat 84 Bottomless Pit 87 United in Fear? 89 Cui Bono? 91 3.2 Europe Re-Nationalised? 93 Germanisation, or Nationalisation? 94 Community of Fate and Responsibility 97 Mortal Europe, More Europe, and a Different Europe 99 European Domestic Politics 102 3.3 Embodiment of Progress, Competent Governance and Modernisation? 104 Saviours Without a Plan 104 Markets as the Lords of Politics 107 Europe as Moderniser 109 Notes 113 ... ix Contents The Setting: The Greco- German Affair on the Euro Stage 1.1 The Foundation of European Demoicracy 1.2 The Greco- German Affair and the Battlefield of Stories 1.3 Mutual Recognition. .. CHAPTER 1 The Setting: The Greco- German Affair on? ?the Euro Stage Abstract This opening chapter introduces the object of the book’s empirical enquiry, referred to somewhat playfully as ? ?the Greco- German. .. deference to each other’s ways—brief, the rules of recognition in Europe One can think of this process as the 1 THE SETTING: THE GRECO- GERMAN AFFAIR ON THE EURO STAGE deeper sociocultural foundation