UNIVERSIDADE DE BRASÍLIA INSTITUTO DE RELAÇÕES INTERNACIONAIS RENATO VENTOCILLA FRANCO OF RULES AND (DIS)ORDER: THE CONFLICT BETWEEN GERMANY AND GREECE WITHIN THE EUROZONE CRISIS. Brasília 2019 Renato Ventocilla Franco Of Rules and (Dis)order: The Conflict between Germany and Greece within the Eurozone Crisis. Dissertação submetida ao Programa de Pós Graduação em Relações Internacionais do Instituto de Relações Internacionais da Universidade de Brasília como requisito parcial para obtenção do grau de mestrado em Relações Internacionais. Área de concentração: política internacional e comparada. Orientador: Antônio Jorge Ramalho da Rocha (IREL - UnB) Co-orientador: Roberto Goulart Menezes (IREL - UnB) O presente trabalho foi realizado com apoio da Coordenação de Aperfeiçoamento de Pessoal de Nível Superior - Brasil (CAPES) - Código de Financiamento 001 Brasília 2019 Franco, Renato Ventocilla. Of Rules and (Dis)order: The Conflict between Germany and Greece within the Eurozone Crisis. Dissertação apresentada ao Programa de Pós-Graduação em Relações Internacionais da Universidade de Brasília, como requisito parcial para a obtenção do título de Mestre em Relações Internacionais. Banca examinadora: Profa. Dra. Aline Regina Martins Martins (FCS – UFG) Prof. Dr. Estevão Rezende Martins (IREL – UnB) Prof. Dr. Luiz Daniel Jatobá França (IREL – Unb) Prof. Dr. Antônio Jorge Ramalho da Rocha (orientador, IREL - UnB) Prof. Dr. Roberto Goulart Menezes (co-orientador, IREL - UnB) Patriotismus heißt für mich, die eigenen Interessen immer auch zusammen mit den Interessen anderer zu denken. Deshalb werde ich nicht müde, immer wieder auch für eine Stärkung der multilateralen, werte- und regelgebundenen Weltordnung zu werben. Angela Merkel, Berlin, 28 January 2019 Je le disais à l'instant, devant ce rêve carolingien à la hauteur duquel nous souhaitons être mais le risque européen aujourd'hui est, si je puis dire, un risque lotharingien, celui d'une division extrême Emmanuel Macron, Aix-la-Chapelle/Aachen, 10 May 2018 To Fred and Jojo ACKNOWLEDGEMENTS My idea of researching ordoliberal ideas in the European Union has been a long time in the making. It was only possible to find it because I shared a subscription group with Antônio Teles and Igor Versiani. Funny to say that it was just the beginning. Since then, Igor and Antônio helped me in a lot of difficult situations during my Master's. Furthermore, André Segovia, Leili Sadri, Thiago Moreira, Maurício Piatti, Bernardo Leal, Henrique Félix, Luisa Freitas, and Rafael Almeida accompanied my last periods in Brasília with an infinite patient and welcoming talks. This work would be unthinkable without all of them. Special thanks go to the following, whose company made a significant differential during the first and second year of the Master program at the Institute of International Relations: Profa. Maria Helena, Prof. Fidel Pérez, Laryssa, Lucas Baggi, Lucas Eduardo, Victoria, Angelica Szuko. My conference partners and incredible friends, Leonardo Bandarra and Luiza Cerioli, made an exceptional company in San Francisco during the ISA Conference. I want to thank Prof. Pio Penna, who urged me to apply for the Master in International Relations. His caring support that lasts more than seven years was essential to reach where I am now. If I am deeply proud of finishing the program, it is because of his everlasting encouragement. Prof. Daniel Jatobá was the first professor that I met at UnB as an undergraduate student in History. We crossed our paths again after the Master's selection process, where he praised my object of study. I am grateful that he is present in the final phase of the dissertation, at my 'Banca', to discuss the maturation of my initial idea. Moreover, I would like to extend my thanks to Prof. Estevão Rezende Martins (UnB) and Prof. Aline Regina Martins (UFG), who accepted my invitation to participate in my 'Banca'. Their knowledge of European Integration and International Political Economy will make a decisive contribution to the review of the manuscript. I am immensely glad that such competent intellectuals will examine my research. I was fortunate to have two brilliant and rigorous advisors, Prof. Antônio Jorge Ramalho and Prof. Roberto Goulart Menezes, who gave me invaluable remarks, intellectual insights, and backing for the time that I took to finish this dissertation. Prof. Antônio Jorge impeded me from analysing all the GIIPS, as I originally planned to do, and concentrate in Greece. Looking in retrospect, I can gratefully guarantee that he is directly responsible for transforming this dissertation into a possible task because of his conscious advice. Prof. Roberto made sure to secure a comfortable office for me to work in the manuscript, keeping me focused on finishing the work. I will take our talks and their pieces of advice wherever I go. I received invaluable comments during my period of the research field and tried arguments of this work in Madrid, São Paulo, Paris, Chicago, San Francisco, and Berlin. Many friends and family hosted me during that period. I appreciate the hospitality and gentleness that Baptiste, Isabella Carrazza, João Fiocchi, Henrique Barbosa, Vinicius Bivar, and Leonardo Bandarra (again, really, you saved me) gave me during my travels. Professor Adam Tooze of Columbia University gave me a generous part of his time during the "Coping with Instability" Workshop in Paris, where he revealed his interest in the evolution of German liberal ideas and the intention of transforming "Schäubleverstehung" in his forthcoming book. I became deeply inspired by his talk and motivated to contribute to the debate. At the 25th International Conference of Europeanists (CES) that happened in Chicago, I was fortunate to talk about my project with Professor Waltraud Schelkle of London School of Economics, who encouraged me to continue researching in the area of disintegration theory, saying that she would read it eagerly. Moreover, Prof. Regine Paul of Harvard University congratulated me for being the first Brazilian ever to present a paper at CES, affirming that Brazilians should engage more with European studies. At the ISA 59th Annual Convention in San Francisco, Professor Alisson Johnston of Oregon State University gave me an excellent critique of my ideas, helping me to improve and sophisticate my argument. Talks with Professor Matthias Matthijs of Johns Hopkins University SAIS and Professor Mark Blyth of Brown University inspired me to think in alternative ways of liberalism and austerity. Thereby I am genuinely pleased for them to share their scarce time with me. I hope this work corresponds to all the insights that I gained with them, thus enhancing the quality of the manuscript. I am fortunate to assert that my family made a considerable difference in the writing process while I stayed with them in Brasil, France, Spain, and Germany. In Brasília, my aunt Gisela, my uncle Renato, and my cousin Pedro hosted me many times and shared precious moments with me. Likewise, my grandfather José and my grandmother Marly inspired me through their academic lives in the United States and Europe. My father, Márcio, and my step-mother, Telma, helped me move to São Paulo and understood all the absence that I took writing the dissertation, seeing the mental and physical exhaustion that it caused in the final process. In France, my sister, Manuela, her boyfriend, Fred, and my brother, Guilherme, received me in Lyon and Paris during my academic travels with a smile in their faces. It is needless to say that it made the whole work infinitely less stressful. My mother, Mônica, received me in Clermont-Ferrand and Paris with infinite love and patience, giving pragmatical career pieces of guidance and inspiring me to aim always higher. My aunt Michele, my cousin Mario and little Adelita transformed my time in Barcelona in a loving experience. Michelle read, reread, corrected and binned multiple pieces that I wrote in German, helping me to construct the perfect argument in Goethe's tongue. I visited my uncle Bruno, my aunt Miranda, and my great-aunt Kath in Wuppertal and Krefeld after some years in Brazil, never losing the feeling that I always felt home with them. They received me spectacularly and full of curiosity about my research or my time in Brazil. Bruno slyly influenced me in my decision to improve my German again. Miranda corrected more the seventy pages of previous manuscripts, instructing me to write in really plain British English. Furthermore, both of them taught me how to drink proper coffee and tea, a tradition that I never dropped. Needless to say that my family was of the utmost importance to my research. This dissertation is dedicated to Fred and Jojo. They inspired all my intellectual journey since I was a 16-years old adolescent. To find such enlightened persons in my life during my early intellectual formation is a blessed fortune. ABSTRACT Franco, Renato Ventocilla. Of Rules and (Dis)order: The Conflict between Germany and Greece within the Eurozone Crisis. 2019. Dissertação (Mestrado) – Instituto de Relações Internacionais, Universidade de Brasília. Brasília, 2019. This dissertation highlights the intersection of international relations, European studies and international political economy in the context of the eurozone crisis. Under the framework of Varieties of Capitalism and ideas, I stress the impact of different interests of European countries during bailout negotiations. The analyses demonstrate that economic divergence within the Eurozone is central to understand