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We study one-loop corrections in scalar and gauge field theories on thenon-commutative torus. For rational theta, Morita equivalence allows thesetheories to be reformulated in terms of ordinary theories on a commutativetorus with twisted boundary conditions. UV/IR mixing does not lead tosingularities, however there can be large corrections. In particular, gaugetheories show tachyonic instabilities for some of the modes. We discuss theirrelevance to spontaneous Z_N x Z_N symmetry breaking in the Morita dual SU(N)theory due to electric flux condensation.Comment: 30 page

Perturbative Instabilities on the Non-Commutative Torus, Morita Duality and Twisted Boundary Conditions