The Greek Crisis and the Attempt to Correct Collective Irresponsibility
The Greek Crisis and the Attempt to Correct Collective Irresponsibility

Summary/Abstract: Ever since the Greek Prime Minister Georgios Papandreou took office in October 2009, the developing fiscal and sovereign debt crises in the country have fundamentally changed the government’s political and economic agenda. Faced with mounting risks that Greece may default over its sovereign bond obligations the government reached an agreement in May 2010 with the “troika” of the International Monetary Fund, the European Commission and the Euro zone members for a three-year s 110 billion rescue package. This multi-year program is a mixture of painful austerity measures, structural reform obligations and financial assistance. The execution of the program will be monitored by the “troika” and subject to achieving agreed fiscal targets and wide-ranging reforms in the public sector, social security funding and the operation of labor market. The success of this unprecedented reform attempt is not guaranteed. The measures will challenge and seek to change the established relationship between state, economy and citizens in Greece.

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