The crisis in Greece: missteps and miscalculations

Download PDF: Discussion Paper 9

Author: Benny Andersen
 

Abstract:
This paper analyses the origins of the Greek economic and financial crisis, covering 1981 to 2012. The work depicts how unsustainable imbalances built up over a prolonged period, often fueled by ample low-cost financing sources. It analyses the underlying forces such as institutional shortcomings, data misreporting, and deeply engrained social values and practices that nurtured a climate of widespread corruption and political favoritism. The paper addresses the achievements and shortcomings of the 2010 international support programme and its overall weak traction in Greece. While deficiencies in international surveillance and financial architecture played a role, the paper concludes that the key drivers of the crisis and of the mixed progress in the previous decades were home-grown.
 

Disclaimer: This Discussion Paper was drawn up by the author(s) as part of the evaluation of financial assistance to Greece. To fully protect the independent nature of the evaluation and in line with its Terms of Reference, this Discussion Paper has not been subject to scrutiny or review by ESM management. The views expressed in this discussion paper do not necessarily represent those of the ESM or ESM policy. No responsibility or liability is accepted by the ESM in relation to the accuracy or completeness of the information or data presented in this paper.

Source: European Stability Mechanism | Discussion Paper Series | Volume 2020 (Programme evaluation II special) no. 9 | June 2020 | 42 Pages

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