The Political Causes and Consequences of the Economic Crisis in Greece, 2010-2012

Περίληψη

The causes of the economic crisis in Greece, which erupted in 2010, are primarily political
and are related to a long-term failure of governance, preceding the crisis. The polarization of
political party competition, the extensive politicization of the state administration, the power
of strong vested interests, including the interests of state-dependent business entrepreneurs
and public sector trade unions, and the dominant populist political culture contributed to
the derailment of the Greek economy. In 2010-2012 the consequences of the crisis were both
social and political as shown by the spread of unemployment and the rise of the Left and the
Far Right. The crisis had consequences beyond Greece’s borders, as it revealed the
unpreparedness and incapacity of national governments and international organizations to
delimit shifts in international markets and to stabilize the EU and world economy.