Virtual icon The political culture of non-consensus in Greece during the financial crisis: Roots and effects

Abstract

Speaker: Stylianos Ioannis Tzagkarakis Before the outbreak of the financial crisis in Greece in 2010, the country had experienced a period of stability and economic development following the restoration of democracy in the mid-1970s. However, despite this progress, the political system was marked by a limited capacity for consensus among key political actors, including but not limited to political parties and influential interest groups. Scholars have thus described Greece as a case of reform-resistant and disjointed corporatism (Lavdas, 2013; 2016), highlighting the systemic challenges in achieving coordinated policymaking. During the years of economic growth, there was a widespread sense of satisfaction among citizens, fostering the illusion of sustained prosperity. However, the eruption of the financial crisis struck the political system like an earthquake, exposing deep-rooted structural and systemic weaknesses. In this period, most of the reform decisions that had to be made were of unprecedented significance, and equally critical was the speed at which these decisions needed to be implemented. Yet, the inability of political elites to reach joint decisions in a timely manner led to delays in crucial reforms and contributed to the creation of an extremely toxic and divisive political climate. This lecture will focus on the period of the financial crisis in Greece, aiming to uncover key characteristics of Greece’s political culture of non-consensus. It will explore the lessons learned, the dysfunctions that emerged, and the broader implications of these political dynamics. The analysis is further enriched by qualitative research based on interviews with both national and international officials who played a pivotal role in the negotiations surrounding Greece’s bailout agreements (Memoranda of Understanding) with the European Commission, the International Monetary Fund, and the European Central Bank. By examining these factors, the lecture seeks to discuss the structural and cultural barriers that have historically hindered effective governance and thus social progress in Greece, while also reflecting on potential paths forward.