History: The Greek Crisis

Maria Diaz RipaNathalie HabashiMeghan LeblancChloé van Bussel

History: the Greek Crisis

A little bit of information about Greece

A quick timeline of important dates

The impact of WW2

The Greek Civil War

Adoption of the Euro: when and why

The impact of the Olympics on the Economy

The Crash

GREECE European country

Capital: Athens

Situated in the Mediterranean

Quick timeline: important dates

1973 - Greece declared a republic, the monarchy is abolished

1975 - New constitution declares Greece a parliamentary republic with some executive powers vested in a president

1981 - Greece joins EU

2002 January - Euro replaces drachma

2004 August - Athens hosts Olympic Games

2010 January - Government announces second round of tough austerity measures, including public sector pay cuts, fuel increases, and a crackdown on tax evasion.

The Main Events

Greece during World War II (1940-1944)

The Greek Civil War (1941-1949)

The Euro’s endorsement into Greece

The Crash in Greece (2009-2012)

To put you in context.. Greece before World War II

Greece throughout 1924 to 1935 23 changes of government A dictatorship 13 coup d’états

Greece 1935 End of the Greek Republic Greece under a monarch Georgios Kondylis • Overthrew the government• Appointed himself Prime Minister• Arranged a Plebiscite

To put you in context.. Greece before World War II

98% of the reported votes were in favour of the restoration of the Monarchy

!!STAGED!!

King George II instates his own dictatorship through the METAXAS REGIME

• Banishment of political parties and those opposed to his dictatorship

• Dissolution of the Parliament• Abolishment of the Constitution

Greece During World War II (1940-1944)

Began in 1940 Greek resistance to Bulgarian and

Italian invasions Wore off with the entrance of the

German Forces in the Axis

April 1941 German invasion and occupation of the

Greek nation

Greece During World War II (1940-1944)

Bulgaria, Italy and Germany (nearest neighbouring region of the Axis) divided the country amongst each other

Separation of ownership leading to better control

Greece During World War II (1940-1944)

Throughout the war: Various outbreaks of resistance in Greece

Axis Groups forced out in certain regions Difference in opinions of these resistance

movements led to civil war only ending in 1949

October 1944 Red Army liberates Greece from German

forces

Greece During World War II (1940-1944)

War Repercussions on Greece

Great economical troubles Destroyed infrastructure Majority of the nation’s Jewish

population exterminated Around 400 000 deaths at the hands of

the Axis occupational force Beginning of economical detriments

Greek Civil War (1941 -1949)

Began in 1941 at the hands of the German occupation

Two main governments recognised by different international authorities

King George II (exiled and taking refuge in Egypt). Recognised only by Western allies and not by the Soviet Union

Second government selected by the Germans to keep the state in order

Greek Civil War (1941 -1949)

Causes of the Greek Civil War:

Both governments lack support and legitimacy in the country emerging resistance forces

Poverty and famine intensifying in the country at the hands of the Germans and Greek Bourgeoisie numerous counterattacks against them

Distinct opinions developing in those resistance movements

Greek Civil War (1941 -1949)

Two Opposing affiliation of the Greek Civil War:

Communist Party of Greece (KKE) Largest resistance force Comprised of the socialist working class of

peasants and the proletariat Created the National Liberation Front (EAM) ELAS EAM’s army

The Greek National Republican League (EDES)

- Group committed to the liberation of Greece from fascism and communism

Greek Civil War (1941 -1949)

During World War II

Resistance troops fight off Axis groups in certain regions of their country

EAM’s army conducts massive attacks against EDES putting them in strategic and advantageous position putting them at a leading scene once the second world war was over

Greek Civil War (1941 -1949)

Early 1947 (shortly after World War II ended)

EDES support switches from the British to the Americans ( due to financial purposes)

Marshall Plan, instated by Truman, provides EDES

Food supplies Equipment Military aid

EAM receiving reinforcements from Yugoslavia and Albania (very little from the Soviet Union)

Greek Civil War (1941 -1949)

June 1949 (Near the end)

Soviet Union and Yugoslavia cut alliances (1948) due to Tito (president of Yugoslavia)’s refusal to submit to Stalin’s regime

EAM forced to pick sides between Soviet Union strongest communist force Yugoslavia Initial supporter and gave EAM access to its

borders

EAM chooses the Soviet Union

Tito closes off his borders denying the EAM access to them.

Turning point for the EDES as EAM is no longer able to sustain resistance

Greek Civil War (1941 -1949)

October 16th 1949

KKE (the Communist Party of Greece) announces a cease fire

Marking the end of the Greek Civil War

Victory goes to the EDES

Repercussions of the Greek Civil War

Later that year, Greece joins the North Atlantic Treaty Organization (NATO)

50 000 people killed during the Greek Civil War

EAM’s brutal attacks against villages/ executed civilians/ suspected enemy collaborators/ all those accused of politic crimes

Repercussions of the Greek Civil War

Remaining repression against the Greek Communists (Lasting 25 years after the end of the Civil War)

Persecutions Banishment into labour camps Re-education of their orphan children

Until today, many of the Greek communists that fled into neighbouring countries like Albania are denied access into Greece despite their legal citizenship

Greece adopts the Euro

Interesting fact:

In 1999, Greece was left out of the Eurozone for failing to meet the EU's economic criteria.

Greece adopts the Euro

Greece became the 12th member of the Eurozone in 2001

At the time, the big money maker Tourism

The adoption of the Euro:• Makes it easier for European tourists

(particularly French and Germany)

Banks and companies become more willing to invest in Greece (because they use the same currency as important countries such as France, Germany)

Greece adopts the Euro

Few worries

By 2002, the Euro is the currency replaces the Drachma

Greece adopts the Euro

But how did it convert from the drachma to the euro?

To qualify the Greek Government had to adopt a tough austerity program, making deep cuts in public spending.

Entrance into the euro zone contingent on Greece's accomplishing certain reforms

Greece adopts the Euro

Why did it change?

Currency stability

Gave up monetary independence

Political instability experienced by Greece major motives

This notion has given fruitful results for Greece in terms of enabling it to provide the country with economic and political stability.

The 2004 Olympics

After adopting the euro Able to borrow much more money without spending too much in interest

Most of the money used to pay for improvements on : infrastructures, roads, bridges had positive economic impact

BUT: some of the money was wasted

Billions of euros were spent for the Olympics

The 2004 Olympics

Tourists and their money didn’t pay for the deficit

A lot of money was spent on the Olympic Stadium that brings now very little profit

Result: The Olympics where an expensive event, and cost Greece a lot of money that was not received

The Crash (2009-2012)

2009• Greek rating drops• Country must now pay more interest to its

creditors• First austerity plan: higher taxes, lower

wages of civil servants, hiring freeze in the public service

• The socialist PASOK (PanHellenic Socialist Movement) take over the new democracy (Center-left)

The Crash (2009-2012)

2010• Financial crisis is added to the economic

crisis• Two main money-makers in Greece: tourism

and maritime transport AFFECTED• Unemployment rate skyrockets• By April Athens requires assistance from

the International Monetary Fund (IMF) and the European Union (EU) to cut spending

• Spain, Portugal and Italy begin to worry about their own economic predicament.

The Crash (2009-2012)

2011

• Greece struggles to emerge from the recession

• The debt continues to rise to over 150% of Gross domestic product (GDP)

• The Troika (European Commission, European Central Bank, International Monetary Fund) approves of the second rescue plan remain in the red

The Crash (2009-2012)

2012• Street protests, now more violent, multiply

across the country• From May to June, there is an uproar: which

party will lead the country? Who will be the Prime Minister?

• Finally, a decision was made: the New Democracy party led by Antonis Samaras wins Greek elections, falling short of majority in parliament (center-right)

• On June 28th and 29th, EU leaders meet at a summit on growth.

Thank you