Populism and the Greek crisis: A modern tragedy

Abstract

Greece’s economic crisis is a by-product of a deeper institutional, political and societal crisis. The crisis brought about a bailout programme conditional on fiscal and structural reform, as set forth in three successive memoranda of understanding between Greece and its creditors. The domestic political class accepted these memoranda, albeit reluctantly. After the initial response with its populist overtones and the subsequent long and tortuous process of adjustment, the country now seems close to a consensus on a minimum reform agenda. However, Greece needs a change of paradigm: a shift away from deep-rooted attitudes that have impaired the country’s tremendous potential, to a culture of reform and growth. Its political leadership has to come up with a plan, one embraced by the people, that will push the country out of the current catastrophic interlude and lead it into a new virtuous cycle.