The Long History of Greece's Economic Woes: Blame Beyond the Current Leaders

For decades, Greece has faced significant economic challenges, a situation that can be traced back to a series of historical and political factors. This article explores how various leaders, from the early 19th century to recent times, have contributed to the country's current economic woes. Unlike recent political figures, many of these leaders, for better or for worse, had significant impacts on the Greek economy that persist into the present day.

Historical Leaders and Their Impact

The roots of Greece's current economic problems extend far beyond the era of recent political figures. Certain leaders have played critical roles in shaping the nation's economic trajectory, often in unforeseen ways.

Konstantis and Georgios Mavromichalis (1831)

One of the earliest instances of the complex web of conflicts that has shaped Greece's economy occurred in 1831 when Konstantis and Georgios Mavromichalis assassinated Ioannis Kapodistrias, the first governor of Greece. Kapodistrias, a former Russian foreign minister, was working to establish a modern Greek state, but his vision was not shared by all. This act of violence plunged Greece into political chaos, leading the European powers to impose a foreign king on the country and mark the beginnings of an unstable monarchy that would persist for decades.

Winston Churchill (1944-1964)

In the post-World War II era, Winston Churchill, as British Prime Minister, had a significant influence on Greece. In 1944, Churchill facilitated the restructuring of Greece, placing it within Britain's sphere of influence. Churchill’s efforts to restore the Greek monarchy and exclude former communist partisans from the new Greek army contributed to the country's descent into civil war. The lack of political and economic stability further entrenched Greece's reliance on external aid and sowed the seeds for future crises.

Constantine II (1940-present)

Since Greece transitioned to a parliamentary republic in 1974, King Constantine II has had a significant influence, particularly from 1964 to 1967, when he played a crucial role in undermining the political order. During this period, Constantine supported centrist governments over time, leading to constitutional crises and political instability. These events ultimately paved the way for the 1967 military coup, which had a lasting impact on Greece's political and economic landscapes.

Georgios Papadopoulos (1967-1974)

The political disturbances of the mid-20th century were further exacerbated by the 1967 military coup led by Colonel Georgios Papadopoulos. This seven-year dictatorship not only impacted the political landscape but also the economic development of Greece, as it stifled democratic reforms and limited the country's growth potential. While Papadopoulos was later imprisoned, his policies and his use of extreme rhetoric influenced the political and economic narratives of the era.

Andreas Papandreou (1981-1989, 1993-1996)

Greece's longest-serving post-revolutionary prime minister, Andreas Papandreou, introduced significant social and progressive reforms during his decade-long tenure. However, these reforms also led to substantial increases in public debt and deficits. His socialist policies and support for his social base came at the cost of economic stability, ultimately contributing to the economic crisis of the 2000s.

George Papandreou (2009-2011)

Prime Minister George Papandreou, like his father and grandfather, capitalized on a sense of urgency during Greece's economic crisis by promoting the idea that "there is money." His failure to manage the resulting fiscal crisis led to a €110 billion bailout from the European Union and International Monetary Fund. This interference by the troika has left a lasting impact on Greece's economy, marked by a strict implementation of austerity measures.

Akis Tsoutsas (1996 vs 2009)

If Akis Tsoutsas had succeeded in becoming prime minister in 1996, he might have taken Greece down a different path. Instead, he narrowly lost the leadership of the socialist Pasok party to Andreas Papandreou. Tsoutsas was later sentenced to life imprisonment for his role in a military procurement scandal, highlighting the intertwining of political power and corruption in Greek history.

The Oligarchs and Ongoing Issues

Greece's oligarchs have played a significant role in both facilitating and exacerbating the country's economic woes. These wealthy individuals, who control vast economic resources in sectors such as shipping, banking, and beyond, have often used political connections to secure contracts and restrict market competition. Their influence over media and the public sphere can also be seen as a way of perpetuating their dominant position.

Petros Kostopoulos (1990s-)

Businessman Petros Kostopoulos, known for his flamboyant lifestyle and business acumen, introduced an era of consumerism in Greece, aligning with the new economic policies of adopting the euro. His publications and media outlets served as a steering mechanism for consumer behavior, albeit at the cost of fueling a culture of excess and dependence on credit.

Nikos Michaloliakos (1990s-present)

The rise of Nikos Michaloliakos and his neonazi party, Golden Dawn, coincided with Greece's economic crisis. Michaloliakos and his supporters capitalized on the heightened social tensions, using violence and intimidation against migrants and political opponents. Their political activities, although illegal, continue to influence the political discourse and contribute to social and economic instability.

The Troika's Influence

The Troika, comprising the European Commission, European Central Bank (ECB), and International Monetary Fund (IMF), has had a significant and controversial impact on Greece. Their austerity measures, driven by optimistic growth projections, have led to social and economic hardship, including high unemployment and a significant reduction in public services. The Troika's approach has been criticized for its lack of flexibility and its failure to consider the unique socio-economic conditions of Greece.

Conclusion: The economic woes of Greece are complex and far-reaching, with roots that span centuries. From the tragic assassination of Ioannis Kapodistrias to the rise of neo-Nazi movements and the influence of oligarchs, the political and economic landscape of Greece has been shaped by a series of individuals and institutions. Understanding these historical and political factors is essential for comprehending the current economic challenges faced by the country.