The PIIGS and the EU: the Politics of Debt and Migration Pressure

David Leblang, Professor of Politics at the University of Virginia, will present on the politics of the EU sovereign debt crisis. When the crisis began, it was widely understood that Germany’s
response would dictate its ultimate resolution. If Germany chose to support bailouts, then it was possible that debt-saddled countries would be able to survive within the Eurozone. If not, it would likely result in a wave of financial sector failures, defaults and, possibly, exiting the Eurozone. Leblang argues that the decision to bailout Greece reflected domestic political calculations. While bailing out Greece would result in some short-term political costs, Merkel’s government was more concerned about the social and economic consequences of potential default, such as a massive inflow of migrants from Southern Europe.