Crucial decisions in the Eurogroup

Abstract: This paper is a qualitative study of interactions between domestic and EU-level politics. I’ll apply the model of Two-Level Games by Robert D. Putnam on the 2011 Euro-crisis scenario where Finland hindered the negotiations of the new bailout package because they wanted to get collateral as a condition for future loans for the problem countries like Greece. First, a brief overview of the scenario is presented. Then, using the theoretical concepts of the Two-Level Games, Win-Sets for both Finland and the Eurogroup are presented. The domestic power balance, political institutions and preferences of the Chief Negotiators determine the Win-Sets. When a better picture of the Win-Sets is constructed, I’ll apply the model of Two-Level Games on this specific scenario. The study shows that the collateral demand negotiations had very distinct Two-Level dynamics and the decisions were made using a rational logic since the information flow and planning was very efficient in the final phase of the negotiations.