Balkanalysis.com

Overview

Legendary Greece conjures up a myriad of associations and meanings for outsiders, due to its storied past. This maritime gem, one of Europe’s most-visited and most beautiful countries, clings to its traditions – such as Orthodox Christianity – tenaciously. However, its people also display a forward-looking dynamism and have long been known for clever entrepreneurship.

Nevertheless, Greece’s stubborn traditionalism still defines the political scene; some key leaders belong to a few powerful families that ruled the country for much of the 20th century. One side effect of this tendency is the preservation of a nebulous power distribution system marked by nepotism, deceit, backroom dealings and patronage schemes.

The convergence of these detrimental characteristics with a global financial crisis in 2009 has now given Greece an unhappy prominence worldwide due to its financial woes, and their potential implications for the future of the European single currency. Greek internal stability is being eyed with concern by Brussels, Washington and other world powers, while investors and regional states fear the knock-on effects of any instability.

Nevertheless, despite its perceived delinquency in European financial matters, and its continued impasse with Skopje over the ‘Macedonian name issue,’ Greece considers itself an integral part of Europe, a guardian of the continent’s eastern periphery, and the one Balkan country capable of drawing on the kind of financial and political resources accrued over time- in the form of its influential diaspora, global business reach and, of course, its historic image as the birthplace of European civilization.

Outstanding Issues

Chronic issues of maritime and airspace border violations with neighboring Turkey, and massive illegal immigration from there; relations with the European Union, IMF and other global financial players over finding a resolution to the country’s debt crisis; corruption in politics and business; an ongoing showdown with the Republic of Macedonia over the latter’s constitutional name, a stance that continues to hold up Macedonia’s Euro-Atlantic integration; a resurgence of violent leftist and anarchist groups, some with underworld connections; illegal immigration, Muslim and other minority questions and related issues.

Forward Planning: Points of Interest

• The government’s handling of the debt crisis issue, in terms of both public acceptance of austerity measures and relations with the EU and other outside parties
• Political stability in coming months and security concerns stemming from it
• Economic opportunities for outside interests including China, Russia and Turkey in critical infrastructure and energy sector, among others, due to the financial upheaval affecting the state
• What the opposition (from both right and left) do for capitalizing on the government’s economic policy problems; potential security risks from violent anarchist groups, especially if similar problems emerge in other European countries also having such groups
• Perceived activity, or non-activity, of the government in terms of resolving the chronic ‘name issue’ dispute with neighboring Macedonia
• Relations with an assertive Turkey, strengthened alliances with Turkey, and the involvement of both with the Cyprus issue
• Role of Greece foreign diplomacy and foreign diaspora in supporting President Obama’s re-election bid