ASSESSMENTS

Greece's Economic Past Will Haunt Its Political Future

Jun 6, 2019 | 16:29 GMT

The national flag of Greece.

The Greek economy is growing again, but the effects of the country's long crisis are still evident.

(Lukasz Stefanski/Shutterstock)

Highlights

  • After years of harsh austerity measures, the waning popularity of Greece's ruling Syriza party has made it vulnerable to losing power come July 7, when the country will hold an early general election. 
  • Regardless of who wins the vote, however, Greece's next leaders will still have to work within the confines of a fragile economic recovery, where unemployment remains high and the banking sector weak.  
  • In the coming years, Greece's dwindling and aging population will strain the country's public services, making it harder for Athens to grow out of its massive debt. 
  • The next administration will also have to navigate a range of complex territorial and diplomatic disputes with Turkey, including those related to energy exploration off the coast of Cyprus. 

For the first time in a decade, Greek voters will elect a government without their country being part of an economic rescue program. Markets have reacted positively in anticipation of the July 7 vote since opinion polls have the conservative New Democracy party securing another victory, after squarely defeating the ruling Syriza party in the recent EU parliamentary elections. But despite the opposition party's campaign promises to accelerate Greece's recovery through pro-business policies, if elected, its leaders will soon find that the complicated issues underpinning Athens' economic malaise and geopolitical constraints will not be solved in one term -- or several, for that matter....

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