Behind Closed Doors: The Decision-Making Dynamic in Informal Governance during the 2015 Greek Bailout Negotiations

Abstract

This Master Thesis explores the decision-making dynamics during the 2015 Greek bailout negotiations, focusing on the informal aspects of the negotiations. This thesis suggests a new integrated theoretical framework combining EU integration theories and informal governance practices. The thesis begins by reviewing the Euro crisis, highlighting the significant economic and political challenges faced by Greece. It then delves into the theoretical framework, examining the foundational theories of EU integration: Intergovernmentalism, which emphasizes the dominant role of member states; Supranationalism, which highlights the influence of EU institutions; and Postfunctionalism, which considers the impact of domestic politics on the integration process. Next, the concept of informal governance is analyzed, and the need for an integrated framework is explained. The empirical part of the thesis is a detailed case study of the SYRIZA government's negotiations, regarding the Greek bailout, with the EU from January to July 2015. This was the first time a government had been elected in the EU to fight established EU policies. Through qualitative methods, including interviews with key stakeholders and analysis of primary sources, the research traces the informal negotiations that took place behind closed doors. The findings reveal the intricate power dynamics and the significant role of informal governance in shaping the final bailout agreement. The results suggest that an integrated framework, combining EU integration theories with informal governance, provides a nuanced understanding of the decision-making processes within the EU and make some actors more relevant than others. This integrated approach contributes to the existing literature by highlighting the complexities and informal aspects of EU governance, especially during periods of crisis.