The introduction of EU funding programmes in Greek cities has led to new forms of governance, mainly including the emergence of new institutions for partnerships and citizens' participation. Based on theories of Europeanization and on theories of re-scaling, this paper examines the magnitude and the direction of change in Greek urban policy. It suggests that the new institutions emerging from the Europeanization process face a number of constraints and contradictions emanating from the Greek political system. Empirical evidence shows that three endogenous factors of the Greek political system had impacted negatively upon these partnerships, favouring short-term institutionalization, unequal power relations inside the partnerships and lack of trust and commitment. These factors amount to the financial and political dependence of local authorities to the state, the weak civil society and, finally, the individualistic political culture. However, processes of policy learning and capacity building have also arisen, presenting new challenges for the transformation of urban policy.
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