After having enjoyed a generally stable growth rate and a steady flow of European Union development funds during much of the previous decade, 2010 saw the Greek economy fall into a tailspin. The government has begun to institute strict austerity measures, in order to meet obligations to its creditors. This has led to an inevitable backlash from a hostile public, reluctant to incur the effects of public spending cuts. Greece has witnessed sporadic violent protests in response to the austerity program. Throughout 2010, Greece was beset with widespread strikes, protests and even some riots that have lasted multiple days at a time and have seriously disrupted daily life. Greece will likely continue to face ongoing economic — and as a result, social and political — instability for some time to come.

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Indicator Scores

	Position													Total Score
2011	143 (177)	4.1	2.6	4.5	4.4	4.3	5.1	4.9	3.8	3.1	3.8	2.5	4.3	47.4
2010	147 (177)	4.5	2.8	4.2	4.5	4.6	4.3	4.6	3.7	3.4	3.4	2.4	3.5	45.9
2009	147 (177)	4.5	2.7	4.4	4.7	4.8	4.0	4.5	3.9	3.6	3.5	2.0	3.5	46.1
2008	147 (177)	4.9	2.6	4.3	5.0	5.0	3.7	4.0	3.6	3.9	3.1	1.6	3.7	45.4
2007	146 (177)	4.7	2.0	3.5	5.4	5.0	3.5	4.0	3.1	3.9	3.1	1.6	3.7	51.7

Core Five State Institutions

	Leadership	Military	Police	Judiciary	Civil Service
2011	moderate	good	moderate	moderate	moderate

Basic Information

Context

Although the country is known as being the birthplace of democracy, Greece only just found its way back to parliamentary democracy in 1974 when its military junta was overthrown. Throughout the past 30 years, the country became steadily more prosperous through its membership in the European Union. As a result, trade, financial aid and foreign investment slowly increased. In 2001, Greece had stabilized its economy and met all E.U. requirements in order adopt the Euro as its currency. In addition, the continuing flow of E.U. money supported the growth of the Greek economy. In 2009 after the worldwide meltdown, it became apparent that the Greek economy was saddled with huge public debts, which had for some time been concealed from external scrutiny. The debt crisis led to a reduction in Greece’s credit score, the issuance of massive E.U. and I.M.F. loans and the imposition of deep and wide-spread austerity measures which were met with serious public resistance.

Social Indicators

In response to the debt crisis the government has instituted harsh new austerity measures, to the displeasure of the majority of the population. This has resulted in multiple strikes, riots and highway blockades. While the country is subject to consistent brain-drain, the economic crisis has not appeared to significantly affect this rate. Greece remains a hub for human trafficking. The victims of human trafficking that land in Greece primarily originate from Eastern Europe, the Balkans and Nigeria.

Recent Improvements and Pressures

• There has been a slight decrease in the refugee and displaced peoples score due to tighter immigration and deportation regulations.
• The Group Grievance score has increased due to the adverse reaction to economic austerity measures.

Economic Indicators

Throughout 2010, Greece has been reeling from the enormous debt crisis. Harsh austerity measures were instituted to address ongoing problems well as assuage international concerns. Taxes were increased while public sector salary cuts were made in order to decrease spending to the public sector that employs one in four of the population. Further measures were administered as a result of conditions set by the I.M.F. and the E.U. after Greece accepted a $145 billion loan. Some necessary actions have been held up by red-tape by a notoriously bureaucratic judicial system.

Recent Improvements and Pressures

• The Economic Pressures score has increased dramatically due to the huge debt crisis in which the country has found itself.
• Greece has met staunch resistance to austerity measures and have thus struggled to initiate necessary policies.

Political/Military Indicators

The economic crisis has uncovered significant corruption and cronyism within the Greek government. In combination with the government’s austerity measures, this has dramatically increased the cost of living for ordinary Greeks while failing to address the ongoing problem of tax evasion by the wealthy.

Recent Improvements and Pressures

• The Legitimacy of the State score increased due to public discontent and unrest as a reaction to austerity measures and still rampant corruption.
• Public Service score remained relatively high due to the continued lack of investment in renewing infrastructure quality.
• Civil disruptions saw an increase in police violence against both peaceful and violent protests, adversely affecting Greece’s security score.
• The External Intervention score drastically increased due to the large loan issued jointly by the European Union and the International Monetary Fund.

Latest Update: 2011-05-20 Alessandra Wasserstrom

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