How can the European Union affect the reform of the economic and welfare policies of its member states? What difference do the EU's mix of 'hard law' and 'soft law' instruments make? What constrains domestic adaptation to such policies? These general questions are explored in an innovative case study of one of the most recalcitrant member states of the EU: Greece. Why has Greece encountered so much difficulty in adapting to core EU policies, as well as the Lisbon 2000 programme? Based on extensive empirical investigation, the book explores three highly sensitive policy agendas: pensions; the labour market; and, privatization. It analyses the conflicts over policy and process and considers how well the conceptual frames of Europeanization and of 'varieties of capitalism' explain the constraints on reform. It highlights key systematic features affecting interests and representation. These are far more consequential factors than personalities or even party. Greece faces a long-term problem of Governance.