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. The latter was estimated at -4% in 2010. The country recently announced that its deficit would be "very likely " higher than its forecast of 9.5% of GDP. This will have a worsening impact on the debt, currently estimated at 142.5% of GDP. For the foreign observers the Greek economy should not recover before 2012 and only if the country fully implement the restructuring program of its economy.

The government is making an effort to pursue the measures planned in the structural reforms program to which it is bound by the loans it has received from the IMF and the EC. The priority is to reduce the fiscal deficit by increasing taxation, privatizing public companies and reforming the healthcare system.

The country is facing growing unemployment (which is higher than 10%) 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. A large fishing industry is found in coastal regions and the merchant navy represents 10% of the GDP.

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.

Growth in the tertiary sector is booming. It accounts for nearly three-fourths of the GDP. 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

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 2010, Reporters Without Borders

Indicator of Political Freedom

Ranking:

Free

Political Freedom:

1/7

Civil Liberties:

2/7

Map of freedom 2010
Source: Freedom House