Contemporary Greece and Europe

Achilleas Mitsos, Elias Mossialos

• Publisher: Routledge
• Year: 2019
• Print ISBN: 9781138734067
• eBook ISBN: 9781351739962
• Edition: 1
• Topic: Social Sciences
• Subtopic: Sociology
• Index: Social Sciences

This title was first published in 2000: Contemporary Greek society is characterized by an all-embracing trend for reform. This task, however, is constrained by problems of Greek polity rooted in the historical and political culture. This text explores the important facets of divergence between Greece and the EU, examining the process through which they affect the relative performance of the country in the economic, social, political and international relations fronts, together with significant attempts to modernize and rationalize internal and external policies and structures. The book is in five parts. In the first, introductory, section, Greece's Alternate Minister of Foreign Affairs, the late Yannos Kranidiotis, analyzes the fundamental objectives of Greek foreign policy, whilst the editors explore the challenges of EU membership for Greek domestic and foreign politics, and Greece's participation in the process of European integration. The second part deals with Greece and the EMU, the third analyzes the issues related to state modernization and adjustment. A fourth section examines the welfare state and related policies, and the final part analyzes Greece's foreign policy and external relations, with particular emphasis on the Balkans and Greek-Turkish relations.

Part I
Contemporary Greece and Europe

1 Contemporary Greece and Europe: Introduction and Synopsis

ELIAS MOSSIALOS AND ACHILLEAS MITSOS

Contemporary Greek society is characterised by an all embracing trend for reform. As in all European economies, it should modernise in order to survive the inevitable structural changes taking place in the international system as a result of globalisation. However, for Greece this task is additionally constrained by the need to overcome continual problems which characterise the Greek polity, and are rooted in the historical and political culture of the country: institutional centralisation combined with ineffective policy-making and implementation, intense politicisation of economic and social relations, an absence of stratagem, an overwhelming public sector, a weak but paternalistic state and a ubiquitous network of clientelistic relations, are all features of the contemporary Greek polity. (Mouzelis, 1990; Tsoukalas, 1983; Charalambis, 1989; Diamandouros, 1994). In addition, as highlighted by Mouzelis (1995) the Greek political system is also distinguished by 'the uneasy co-existence of clientelism and populism; both entail a vertical, authoritarian integration of the people into the national political arena and indicate an extremely weak civic society.' This in turn is characterised by an atmosphere of disbelief and scepticism concerning the longevity, fairness and trustworthiness of the political system. In this context, the project and process of transforming Greek society and generating a public and political consensus toward modernisation becomes a very difficult, though not impossible, task.

A significant outcome of these features is the tangible weakness of civil society primarily manifested through the command of party interests in almost all spheres of public life. Moreover, the resolution of economic and social issues in Greek politics has traditionally taken place within a multiple framework of political relations characterised by the competition for state favours between coalitions of political parties, professions, unions, business interests and public sector officials. Such institutional patterns and political customs have created a diverse set of political and economic stakes expressed by powerful groups (both within and outside the public sector) which favour the status quo and have proved able to hinder the formation and implementation of effective state policies. It is evident that in this context the policies of reform are perceived as a danger to the vested interests of certain parts of Greek society which would forcefully oppose any reform. (Pappas, 1999; Sotiropoulos, 1996; Spourdalakis, 1988).

Until quite recently Greece was considered the European Union's odd man out. The country had failed to respond adequately to the EMU project and reform its economic public administration and social policies. Its external relations with almost all neighbouring countries were at an all-time low since the Second World War, and nationalism was on the rise.

The effective integration of Greece into the European Union has not only been an extremely long and non-linear process, but remains incomplete. The initial major disparities - in terms of the level of economic development, social and economic structure, macroeconomic performance - and, even more importantly, the perception of national interest in international relations, have impeded this process. In addition, the functioning of some of the most evident mechanisms of integration, in particular the trade and capital movement sectors, made convergence even more difficult. It was this need for a full and effective integration that made the modernisation of both the Greek economy and Greek society an urgent and imperative objective, and the process of integration synonymous with the process of modernisation.

The process of European Union integration has led to increasing internal disparities which challenge certain existing mechanisms of integration. Conversely it has contributed to raising issues that have provided more maturity to the European Union; issues such as solidarity, the redistribution of resources and factors of production and minority foreign policy positions are of vital importance for particular member states. All are elements of an advanced union. Hence, paradoxically, the existence of a permanent, important and increasing gap between Greece and the European Union led to both the mobilisation and consolidation of domestic forces in favour of modernisation, and to the inclusion of elements of economic and political solidarity in the main structure of the EU.

Against this background, in the 1990s significant economic reforms were introduced. These were combined with attempts to rationalise public administration, external relations and forms of political contact. Could Greece have performed better? The present government has been criticised, not without substance, for not being sufficiently daring in its reforms. This is particularly the case with public administration and social policy. Yet the impact of the reforms and policy changes related to economic policies and external relations was significant, and is depicted in the analysis presented in several essays included in this volume. Nonetheless, differing opinions prevail among the contributors of this volume concerning the potential efficacy of these reforms and policy changes.

This book aims to explore some of the most important facets of divergence between Greece and the EU. It examines the process through which they affect the relative performance of the country in the economic, social, political and international relations fronts, together with the recent significant attempts to modernise and rationalise internal and external policies and structures.

The book has been divided into five parts. In the introductory section, Greece's Alternate Minister of Foreign Affairs, the late Yannos Kranidiotis, analyses the fundamental objectives of Greek foreign policy. Tsoukalis examines the challenges and implications associated with EU membership for Greek domestic and foreign politics, and Mitsos explores Greece's participation in the process of European integration. Part II deals with Greece and the EMU, Part III analyses the issues related to state modernisation and adjustment, Part IV examines the welfare state and related policies and finally Part V analyses Greece's foreign policy and external relations with particular emphasis on the Balkans and Greek-Turkish relations.

The late Yannos Kranidiotis (The Fundamental Objectives of Greek Foreign Policy) emphasises the importance of EU membership for the development of Greece's regional and international role. Greek foreign policy is defined by the political and economic considerations emanating from the country's position within three broader and interrelated systems: the European Union, the regional subsystem of Southeastern Europe and the international system. In this context, Kranidiotis argues that Greece has the potential to play an important regional and international role by promoting peace, stability and cooperation in the Southeastern region and Europe as a whole.

To this end, a determining variable is the further development of Greece's EU membership. The importance of European cooperation for Greece's economy and politics renders the EU the defining framework for the formulation of the country's foreign policy. In this respect, Greece's foreign policy objectives cannot be perceived in isolation to the development of an overall and consistent policy toward deepening and widening the country's EU membership. EMU participation is one major step in this direction. For Kranidiotis, EMU participation is not only an economic, but also a political cause, as it will allow Greece to participate in the future decision making and policy formulating structures of the EU.

Kranidiotis suggests that for the Union's evolution, Greece's policy should consolidate the EU's political dimension toward the eventual crystallisation of a political system of governance, the deepening of integration of Common Foreign and Security Policy issues, and the development of institutional structures that will not only allow flexibility, but also equality in terms of 'integration involvement'. With respect to enlargement, Kranidiotis considers the accession of Central and Eastern European countries, in addition to the Balkan countries, to the EU as an opportunity to cement democracy, stability and prosperity, not only in these countries, but in Europe as a whole. The accession of Cyprus is an important consideration for Greece as it will contribute to achieving both economic prosperity and security in the island and the wider region.

Finally, for Kraniditiotis the development of inter-regional cooperation toward stability and democracy in Southeastern Europe is a primary foreign policy objective for Greece. Greece's status as one of the most developed countries in this area will allow it to play a defining role within such a framework of cooperation. An important aspect of inter-regional cooperation in Southeastern Europe is the development of a peaceful and cooperative relationship with Turkey. To this end, strengthening Turkey's European orientation will contribute both to the improvement of Greek-Turkish relations, and to the stabilisation and economic development of the wider Southeastern region.

Tsoukalis (Greece in the EU: Domestic Reform Coalitions, External Constraints and High Politics) argues that Greece's membership entails not only the challenge of economic adjustment, but that of transforming the functioning of its political institutions towards a system which would provide transparency, flexibility, stability and the development of new forms of social solidarity. He also argues that fundamentally, membership of the EU would require a radical change between the state and the market in Greece.

It is also argued that EU membership has acted as a powerful catalyst for the development of policy reform. The late 1990s witnessed an acceleration of the process of modernisation in both economic and political terms. The political scene is characterised by decreased polarisation, and the issue of modernisation/reform cuts right across the two main political parties, while a broader change in the forms of political contact is manifested in the 'mushrooming of citizen's movements'. Regarding economic developments, achieving the EMU target could be seen as a firm indicator of Greece's economic advancement. However, much is still required to implement structural reforms. Greece's effective performance within this new EMU environment is dependent upon the success of important structural reforms. In this respect, it is argued that using EMU requirements and the external constraints associated with EU membership to introduce reforming policies, could prove dangerous. In terms of foreign policy, EU membership has strengthened Greece's economic and political weight. However, the author agrees with Ioakimidis (see The Europeanisation of Greece's Foreign Policy: Progress and Problems in this volume) that there is a gap between the EU's expectations of Greece, and the actual ability of the European cooperation framework to pursue coherent foreign and security policies. A small country like Greece should pursue high politics less and view the EU as providing a coherent institutional framework for careful diplomacy, identifying common interests with other countries, building coalitions and creating economic and political alliances.

Overall, Tsoukalis argues that EU membership has had a positive impact on Greek society and economy, and that despite its delay, Greece has entered the process of reform and modernisation. However, there is still much to be done in terms of economic advancement. In the field of foreign policy, Greece faces distinct challenges in comparison to other EU members. Given the nature of the EU, Greece's successful membership will require a combination of more domestic reforms, careful diplomacy and less high politics abroad. It is the author's strong impression that 'Greece has been slowly but steadily moving in this direction'.

Finally, Mitsos (Maximising Contribution to the European Integration Process as a Prerequisite for the Maximisation of Gains) explores Greece's participation in the process of European integration and argues that it is in the country's national interest to pursue a pro-integrationist, federalist approach in the European Union. According to Mitsos, the maximisation of gains from EU membership is only possible if Greece's long-term goals coincide with the other member states and Greek governments adopt a federalist outlook and practices.

Greece's approach to the European integration process has been characterised by a certain intergovernmentalism. Nonetheless, in recent years, the realisation of the economic gains to be expected from EU membership has resulted in a more European approach. This is reflected in a political and social consensus in favour of European integration.

Despite this fact however, Greece continues to adopt a strong intergovernmentalist stance regarding major decisions on the direction of the integration process, diverging significantly from other member states. As a result, Greece remains a marginal country with respect to the decision-making process within the European framework. The driving force behind Greece's intergovernmental approach to the integration process is to be found in its foreign policy considerations, and in particular in its relation to Turkey which affects the entire spectrum of Greek policies. Greece's success in economic issues lies in the development of a gradual convergence between national and Community long term goals. In the field of foreign policy issues such a condition is difficult to achieve: this difficulty is exacerbated by Greece's reluctance to promote a long term approach emphasis ing closer ties between the EU and Turkey.

It is also argued that it is in Greece's interest to adopt a consistent pro-integrationist stance in its overall political action within Community processes. Isolating a particular policy area and adopting contradictory strategies, tactics and approaches regarding the EU's various policy areas, is not only impossible, but will eventually prove detrimental to Greek interests. Greece's stance on the extent, depth and form of the Community's sectoral policies, or their financial consequences needs to be compatible with its internal economic policy, as well as its foreign policy. Moreover, Greece must recognise the need to promote the identification of long-term goals with a strong European dimension. This will lead to the acceptance of the federalist logic in everyday Community practices which, in turn, will permit the maximisation of gains from participation in the process of European integration. A federalist approach is not just an ideological choice but an imperative of the national interest.

The second part of the book deals with issues related to Greece's membership of the European Monetary Union (EMU). All contributors suggest that Greece has made sig...

Table of contents

• Cover
• Half Title
• Title
• Copyright
• Contents
• About the Authors
• PART I: CONTEMPORARY GREECE AND EUROPE
• PART II: GREECE AND EMU
• PART III: STATE MODERNISATION AND ADJUSTMENT
• PART IV: SOCIAL POLICIES
• PART V: FOREIGN POLICIES AND EXTERNAL RELATIONS