The chapter discusses the economic record of the New Democracy government in Greece during 2004-2009. It argues that much needed structural reforms were abandoned during that time and that the government lost control of macroeconomic policy, leaving Greece perilously positioned during the onset of the global financial crisis.
The chapter discusses the circumstances under which the Greek government was forced to seek a bailout from the EU and the IMF. It is argued that the economic measures taken by the Greek government did not prove sufficient to restore conference in the international markets, leaving Greece with no alternative but to seek external rescue. It is also argued that the Eurozone itself was unprepared to deal with the severity of the unfolding Greek crisis.
This chapter discusses the economic programme of PASOK in the run up to the 2009 election. It argues that the party failed to realise the seriousness of Greece’s economic peril and did not communicate to the electorate the hard choices ahead.