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EACEA National Policies Platform:Eurydice
Political and economic situation
Greece

Greece

1.Political, Social and Economic Background and Trends

1.4Political and economic situation

Last update: 28 October 2024

Political situation

Greece is a parliamentary constitutional republic, with the Prime Minister as head of the government and a multi-party system. The legislative power is vested in the Greek Parliament. The judiciary branch is independent of the executive and the legislative branches.

Since 2011, Greece applies the Architecture of Local Authorities and Decentralised Administration – "Kallikratis" Programme (l. 3852/2010 ). "Kallikratis" re-formed the administrative division of Greece and re-defined the boundaries of self-government units, the method of election of competent bodies and their powers.

Further reforms in the institutional framework of Local administration were put in place with the l. 4555/2018 and its amendments which aim to strengthen democracy, reinforce participation and improve the funding mechanisms and the development of the local government, by virtue of the programme "Kleisthenis". Kyriakos Mitsotakis is the Prime Minister of the Hellenic Republic. Mitsotakis has led “New Democracy” to victory in the Greek parliamentary elections in July 2019 and June 2023.

Economic situation

Economic problems relating to poverty, social exclusion and economic inequality have always been present in Greece even before the beginning of the economic crisis when Greek economy was achieving high growth rates for over a long period of time.

Since late 2009 - early 2010, due to both international and domestic factors, Greece confronted serious economic hardships. The country faced the second largest budget deficit and the second highest fiscal debt in the European Union. In May 2010, Greece signed a Memorandum of Understanding (M.O.U.) with the International Monetary Fund , the European Union and the European Central Bank in order to receive assistance for reducing its debt while a second MOU was signed in 2015. 2022 was the year that marked the exit from the Memorandum.
 

Investment and expenditure

The following table presents expenditure data regarding education.

Education Expenditure as % of GDP


expenditure on education

expenditure on education eu countries

Source: ELSTAT, Greece in Figures, April – July 2024 

Education and training services in Greece have been profoundly affected by lower public expenditure due to fiscal consolidation measures. Expenditure in education as a share of GDP is one of the lowest in the EU. The ratio of general government expenditure to GDP remained fixed during this period of time, but considering the 25% cumulative GDP decrease, expenditure in education presented a decrease at the same ratio.However, according to the Minister of Education and his speech in Parliament regarding the latest 2024 budget for education needs, "The budget for education is 255 million more than last year, while compared to the 2019, the increase is more than 15%".

Educational attainment level

The following figures present adult population attainment levels for years 2000, 2005 and 2015, 2020 and 2024.

expenditure on education eu countries

Source: Hellenic Statistical Authority (ELSTAT), Population and Labour Market Statistics Division, 2024