Greece
Greece achieved its independence from the Ottoman Empire in 1829. During the second half of the 19th century and the first half of the 20th century, it gradually added neighboring islands and territories with Greek-speaking populations. Following the defeat of communist rebels in 1949, Greece joined NATO in 1952. A military dictatorship, which in 1967 had suspended many political liberties and forced the king to flee the country, was itself overthrown seven years later. Democratic elections in 1974 abolished the monarchy and created a parliamentary republic; Greece joined the EU in 1981.
While there are no known current direct threats to individual travelers or residents in Greece, occasional terrorist attacks against NATO, diplomatic, commercial and government targets occur with the potential for bystanders to become inadvertent victims.
The arrests of the leading members of 17 November terror group in 2002 was a stunning victory for Greek security forces. While the members were tried and convicted, continued low level arson and firebomb attacks indicate that other domestic anarchist groups remain active. Over 25 firebomb attacks have occurred, mainly in Athens and Thessaloniki, since June 2003. Also, in May 2004 unidentified attackers exploded three small bombs at a police station in Athens that caused extensive damage.
The Greek conservative New Democracy Party led by Costas Karamanlis took over the reins of government from the Pan Hellenic Socialist Movement (Pasok) following a convincing win in elections in early March 2004. Pasok had been in government for over 10 years but was perceived in some quarters as ineffectual in improving living standards.
Karamanlis is the nephew of former Greek President Constantine Karamanlis, who presided over the restoration of democracy in Greece after 1974. He has been party leader since 1996 and has no previous ministerial experience. He takes office at a delicate stage in negotiations over the future of Cyprus. However, we do not expect to see any major shift in Greek policy in this area. Preparations for the Olympic games, which are due to return to Greece in August 2004, are also likely to keep Karamanlis busy in his early months in office. Several important Olympic projects are behind schedule but Karamanlis has promised that everything will be ready in time and that the games will be the best and safest yet.
Greece is among the smallest of the economies in the European Union (EU), but has enjoyed fairly strong growth over the past few years with relatively low inflation. In 2001 and 2002, for instance, Greece's real gross domestic product (GDP) grew by an estimated 4.1% and 4.0%, respectively. For 2003, Greece's real GDP growth slowed slightly, to 3.7%, with inflation at 3.1%. Greece's unemployment rate has been trending downwards in recent years, from 11.9% in 1999 to 9.9% in 2002. For 2003, unemployment is forecast at 9.6%. Greece hopes to achieve long-term real GDP growth of 5.0%-5.5% over the next 15 years, but outside analysts believe that this is overly optimistic.
Greece's economic growth is being driven in part by infrastructure construction for the 2004 Olympic Games, which are to be held in Athens in August 2004. Greece joined the "Eurozone" (its 12th member) in January 2001, and the general government budget experienced a surplus in 2001 for the first time in over three decades. In spite of Olympic-related investment, Greece has not attracted as much foreign direct investment (FDI) as it would like.
Relations between Greece and Turkey have improved recently, allowing for discussion of economic and energy cooperation. In March 2002, Greece and Turkey began discussions on resolving a decades-long disagreement over Aegean Sea boundaries. The two countries also are increasing cooperation in the economic and energy areas (see below). Greece is a major investor in the former Yugoslavia and its energy infrastructure is being integrated with that of the Balkan states. Improved relations with neighboring states could help Greece significantly in achieving its ambitious goal of becoming the major Balkan energy (oil, natural gas, electricity) hub by 2010. The situation in the Former Yugoslav Republic of Macedonia, although relatively stable currently, remains a cause for concern since a spate of serious unrest and violence by rebels in 2001.
Labor strikes in the transportation sector (national airline, city bus lines, and taxis) occur with some frequency. Most are announced in advance and are of short duration. Reconfirmation of domestic and international flight reservations is highly recommended.
