Greece: Economic and Political Outline

Economic Overview

Although the crisis hit Greece later than its European neighbors, it nevertheless plunged the country into a deep recession. Greece had to be saved from bankrupcy by the International Monetary Fund (IMF) and the European Commission (EC), however the budgetary restriction measures adopted to restore public finances have taken their toll on growth. In 2011, the fourth consecutive year of economic decline, GDP growth contracted by -6.8%. Forecasts for 2012 are similar (-7%).

Despite a series of austerity plans and structural reforms intended to heal and restore the economy, in 2011 Greece only sunk further into recession. The rating agency Standard & Poor's downgraded the country's note, putting it into the category of "selective default". In October, Greece and its European partners have agreed to ask private creditors to cut the value of state obligations by 50%. In February 2012, a new austerity plan was adopted by the Greek Parliament and the minimum wage was reduced by 22%. The priority remains reducing the budget deficit and public debt and improving the business climate in order to make economic recovery possible. The poor state of public finances and the weak banking sector jeopardize the membership of Greece in the eurozone.

The country is facing growing unemployment (16.5%) and a proliferation of social protest movements against the austerity measures.

Main Sectors of Industry

Traditionally, the Greek economy is based on agriculture. The sector represents 3% of the GDP and employs around 12% of the active population. The main crops are tobacco (largest European producer) and cotton (fifth largest exporter in the world). Greece also has a significant ovine livestock and a large fishing industry is found in coastal regions.

Thanks to the economic diversification led by the country, industry has replaced agriculture as a second source of income, behind services, and accounts for around 20% of the GDP. The main sectors are: electronic goos, transport materials, clothing and construction. More specifically, Greece is the largest European shipowner.

The tertiary sector accounts for nearly three-fourths of the GDP and employes two thirds of the workforce. Tourism provides a vital source of income and alone contributes 11% of the GDP. Marine fishing represents 10% of the GDP.

Source: World Bank - Last Available Data.

Indicator of Economic Freedom

Score:

60.3/100

Position:

Moderately free

World Rank:

82/179

Regional Rank:

35/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Sources of General Economic Information

Ministries

Ministry of development
Ministry of agriculture
Ministry of national economy
Ministry of commercial shipping

Statistical Office

The National Statistical Service of Greece

Central Bank

Central Bank of Greece

Stock Exchange

Athens exchange

Other Useful Resources

Export Credit Insurance Organization (ECIO)

Main Online Newspapers

Eleutherotypia
Greek News on Line
Naftemporiki
Athens News
Kathimerini

Economic Portals

Flash
Imerisia

Political Outline

Type of State

Greece is a republic based on a parliamentary democracy. Greece (official name: Hellenic Republic) was a monarchy until 1974. Greece is a Constitutional State. However, a certain number of NGOs have communicated their concerns about immigrants and the members of religious minorities in particular. Foreign nationals can, usually, expect a fair trial in legal matters. There is a substantial level of corruption in the country, in particular among the police and in the business sector – corruption in Greece is the most widespread among the member countries of the European Union.

Executive Power

According to the Constitution, executive power is exercised by the President of the Republic and the Government ; after 1986, however, the role of the President in the executive branch is ceremonial. The position of Prime Minister, Greece's head of government, belongs to the current leader of the political party that can obtain the confidence of a plurality in the Parliament. The President of the Republic formally appoints the Prime Minister and, on his recommendation, appoints and dismisses the other members of the Cabinet.The Prime Minister exercises vast political power, and the amendment of 1986 further strengthened his position to the detriment of the President of the Republic.

Legislative Power

Legislative power is exercised by a 300-member unicameral Parliament. Statutes passed by the Parliament are promulgated by the President of the Republic. Parliamentary elections are held every four years, but the President of the Republic is obliged to dissolve the Parliament earlier on the proposal of the Cabinet, in view of dealing with a national issue of exceptional importance.The President is also obliged to dissolve the Parliament earlier, if the opposition manages to pass a motion of no confidence.

Main Political Parties

New Democracy
The Panhellenic Socialist Movement (PASOK)
The Communist Party of Greece (KKE)
The Coalition of the Radical Left (SYRIZA)
The Popular Orthodox Rally (LA.O.S.)

Current Political Leaders

President of the Hellenic Republic : Karolos Papoulias - PASOK (since 2005)
Prime Minister of the Hellenic Republic : Interim Prime Minister Lukas PAPADEMOS - Independent (since 10 November 2011)

Next Election Dates

Parliamentary elections : 2012

Indicator of Freedom of the Press

World Rank:

71/179

Evolution:

2 places up compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).