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Greece (08/05)





Hellenic Republic

Area: 131,957 sq. km. (51,146 sq. mi.; roughly the size of Alabama).
Major cities: Capital--Athens. Greater Athens (pop. 3,566,060), municipality of Athens (772,072), Greater Thessaloniki (pop. 1,057,825), Thessaloniki (824,633), Piraeus (182,671), Greater Piraeus (880,529), Patras (170,452), Larissa (113,090), Iraklion (132,117).
Terrain: Mountainous interior with coastal plains; 1,400-plus islands.

Population (March 2001 est.): 10,964,020 million.
Growth rate: 0.21%.
Languages: Greek 99% (official); English.
Education: Years compulsory--9. Literacy--95%. All levels are free.
Health: Infant mortality rate-- 6/1,000. Life expectancy--male 76 years, female 81 years.
Work force: 4.36 million.

Type: Parliamentary republic.
Independence: 1830.
Constitution: June 11, 1975, amended March 1986, April 2001.
Branches: Executive--president (head of state), prime minister (head of government). Legislative--300-seat unicameral Vouli (parliament). Judicial--Supreme Court. Council of State.
Political parties: New Democracy (ND), Panhellenic Socialist Movement (PASOK), Communist Party of Greece (KKE), Coalition of the Left (SYNASPISMOS), and Popular Orthodox Rally (LAOS).
Suffrage is universal and mandatory at 18.
Administrative subdivisions: 13 peripheries (regional districts), 51 nomi (prefectures).

Economy (2004 est.)
GDP: $204 billion.
Per capita GDP: $18,552
Growth rate: 3.7%.
Inflation rate: 2.9%.
Unemployment rate: 10%.
Natural resources: Bauxite, lignite, magnesite, oil, marble.
Agriculture (8% of GDP): Products--sugar, beets, wheat, maize, tomatoes, olives, olive oil, grapes, raisins, wine, oranges, peaches, tobacco, cotton, livestock, dairy products.
Manufacturing (22% of GDP): Types--Processed foods, shoes, textiles, metals, chemicals, electrical equipment, cement, glass, transport equipment, petroleum products, construction, electrical power.
Services (70% of GDP): Transportation, tourism, communications, trade, banking, public administration, defense.
Trade: Exports--$14.4 billion: manufactured goods, food and beverages, petroleum products, cement, chemicals. Major markets--Germany, Italy, France, U.S., U.K. Imports--$50 billion: basic manufactures, food and animals, crude oil, chemicals, machinery, transport equipment. Major suppliers--Germany, Italy, France, Japan, Netherlands, U.S.

Greece was inhabited as early as the Paleolithic period and by 3000 BC had become home, in the Cycladic Islands, to a culture whose art remains among the most evocative in world history. In the second millennium BC, the island of Crete nurtured the maritime empire of the Minoans, whose trade reached from Egypt to Sicily. The Minoans were supplanted by the Mycenaeans of the Greek mainland, who spoke a dialect of ancient Greek. During the Roman, Byzantine, and Ottoman Empires (1st-19th centuries), Greece's ethnic composition became more diverse. Since independence in 1830 and an exchange of populations with Turkey in 1923, Greece has forged a national state that claims roots reaching back 3,000 years. The Greek language dates back at least 3,500 years, and modern Greek preserves many elements of its classical predecessor.

Eastern Orthodox Christianity is the dominant religion in Greece and receives state funding. During the centuries of Ottoman domination, the Greek Orthodox Church preserved the Greek language and cultural identity and was an important rallying point in the struggle for independence. There is a long-established Muslim religious minority concentrated in Thrace and an estimated 300,000 Muslim illegal immigrants living elsewhere in the country. Smaller religious communities in Greece include Old Calendar Orthodox, Catholics, Protestants, Jews, Jehovah's Witnesses, and Mormons.

Greek education is free and compulsory for children between the ages of 6 and 15. Overall responsibility for education rests with the Ministry of National Education and Religious Affairs. Private colleges and universities (mostly foreign) do have campuses in Greece in spite of the fact that their degrees are not recognized by the Greek state. Entrance to public universities is determined by state-administered exams.

The Greek War of Independence began in 1821 and concluded in 1830 when England, France, and Russia forced the Ottoman Empire to grant Greece its independence under a European monarch, Prince Otto of Bavaria.

At independence, Greece had an area of 47,515 square kilometers (18,346 square mi.), and its northern boundary extended from the Gulf of Volos to the Gulf of Arta. Under the influence of the "Megali Idea," the expansion of the Greek state to include all areas of Greek population, Greece acquired the Ionian islands in 1864; Thessaly and part of Epirus in 1881; Macedonia, Crete, Epirus, and the Aegean islands in 1913; Western Thrace in 1918; and the Dodecanese islands in 1947.

Greece entered World War I in 1917 on the side of the Allies. After the war, Greece took part in the Allied occupation of Turkey, where many Greeks still lived. In 1921, the Greek army marched toward Ankara, but was defeated by Turkish forces led by Ataturk and forced to withdraw. In a forced exchange of populations, more than 1.3 million refugees from Turkey poured into Greece, creating enormous challenges for the Greek economy and society.

Greek politics, particularly between the two world wars, involved a struggle for power between monarchists and republicans. Greece was proclaimed a republic in 1924, but George II returned to the throne in 1935. A plebiscite in 1946 upheld the monarchy, which was finally abolished by referendum on December 8, 1974.

Greece's entry into World War II was precipitated by the Italian invasion on October 28, 1940. Despite Italian superiority in numbers and equipment, determined Greek defenders drove the invaders back into Albania. Hitler was forced to divert German troops to protect his southern flank and overran Greece in 1941. Following a very severe German occupation in which many Greeks died (including over 90% of Greece's Jewish community) German forces withdrew in October 1944, and the government-in-exile returned to Athens.

After the German withdrawal, the principal Greek resistance movement, which was controlled by the communists, refused to disarm. A banned demonstration by resistance forces in Athens in December 1944 ended in battles with Greek Government and British forces. Continuing tensions led to the outbreak of full-fledged civil war in 1946. First the United Kingdom and later the U.S. gave extensive military and economic aid to the Greek government. In 1947, Secretary of State George C. Marshall implemented the Marshall Plan under President Truman, which focused on the economic recovery and the rebuilding of Europe. The U.S. contributed hundreds of millions of dollars to rebuilding Greece in terms of buildings, agriculture, and industry.

In August 1949, the Greek national army forced the remaining insurgents to surrender or flee to Greece's communist neighbors. The insurgency resulted in 100,000 killed, 700,000 displaced persons inside the country, and catastrophic economic disruption. This civil war left Greek society deeply divided between leftists and rightists.

Greece became a member of NATO in 1952. From 1952 to late 1963, Greece was governed by conservative parties--the Greek Rally of Marshal Alexandros Papagos and its successor, the National Radical Union (ERE) of the late Constantine Karamanlis. In 1963, the Center Union Party of George Papandreou was elected and governed until July 1965. It was followed by a succession of unstable coalition governments.

On April 21, 1967, just before scheduled elections, a group of colonels led by Col. George Papadopoulos seized power in a coup d'etat. The junta suppressed civil liberties, established special military courts, and dissolved political parties. Several thousand political opponents were imprisoned or exiled to remote Greek islands. In November 1973, following an uprising of students at the Athens Polytechnic University, Gen. Dimitrios Ioannides replaced Papadopoulos and tried to continue the dictatorship.

Gen. Ioannides' attempt in July 1974 to overthrow Archbishop Makarios, the President of Cyprus, brought Greece to the brink of war with Turkey, which invaded Cyprus and occupied part of the island. Senior Greek military officers then withdrew their support from the junta, which toppled. Leading citizens persuaded Karamanlis to return from exile in France to establish a government of national unity until elections could be held. Karamanlis' newly organized party, New Democracy (ND), won elections held in November 1974, and he became Prime Minister.

Following the 1974 referendum, the Parliament approved a new constitution and elected Constantine Tsatsos as president of the republic. In the parliamentary elections of 1977, New Democracy again won a majority of seats. In May 1980, the late Prime Minister Karamanlis was elected to succeed Tsatsos as president. George Rallis was then chosen party leader and succeeded Karamanlis as Prime Minister.

On January 1, 1981, Greece became the 10th member of the European Community (now the European Union). In parliamentary elections held on October 18, 1981, Greece elected its first socialist government, the Panhellenic Socialist Movement (PASOK), led by Andreas Papandreou. In 1985, Supreme Court Justice Christos Sartzetakis was elected president by the Greek parliament. PASOK under Papandreou was re-elected in 1985.

Greece had two rounds of parliamentary elections in 1989; both produced weak coalition governments with limited mandates. In the April 1990 election, ND won 150 seats and subsequently gained 2 others. After Prime Minister Mitsotakis fired Foreign Minister Andonis Samaras in 1992, the rift led to the collapse of the ND government and a victory in the September 1993 elections for Andreas Papandreou's PASOK.

On January 17, 1996, following a protracted illness, Prime Minister Papandreou resigned and was replaced by former Minister of Industry Constantine Simitis. In elections held in September 1996, Constantine Simitis was elected prime minister. In April 2000, Simitis and PASOK won again by a narrow margin, gaining 158 seats to ND's 125. Most recently, parliamentary elections were held March 8, 2004; Konstantinos Karamanlis, the nephew of the former prime minister, became prime minister. Karalos Papoulias was elected as President in February, 2005.

Greece's exemplary success in hosting a safe and secure 2004 Summer Olympics in Athens has enhanced its international prestige. The 2004 Olympics and Paralympics left an impressive and expensive legacy of new roads, spectacular stadiums, and modern public transportation systems begun under the PASOK government in 1997 and completed by the New Democracy government of Karamanlis in 2004.

Greece is a parliamentary republic whose constitution was last amended in April 2001. There are three branches of government. The executive includes the president, who is head of state, and the prime minister, who is head of government. There is a 300-seat unicameral "Vouli" (legislature). The judicial branch includes a Supreme Court. Administrative subdivisions include 13 peripheries (regional districts) and 51 nomi (prefectures). Suffrage is universal at 18.

Principal Government Officials
President-- Karolos Papoulias
Prime Minister--Constandinos Karamanlis
Foreign Minister--Petros Molyviatis
Ambassador to the United States--Georgios Savvaidis
Ambassador to the United Nations--Adamantios Vassilakis

Greece's embassy in the United States is located at 2221 Massachusetts Ave., NW, Washington, DC 20008; tel: (202) 939-1300; fax: (202) 939-1324.

Greece also maintains consulates in Boston, Chicago, Los Angeles, New York, San Francisco, Atlanta, Houston and Tampa.

The government succeeded in 2000 in reducing budget deficits and inflation, allowing Greece to join the Economic and Monetary Union (EMU) on January 1, 2001. Greece, along with 11 out of its 14 European Union (EU) partners, adopted the euro as its new common currency in January 2002. The euro was expected to boost trade, help dismantle the last remaining market barriers within the EU, and stimulate production. However, a more relaxed fiscal policy since 2002 and higher expenditures associated with the preparation of the Athens 2004 Olympics resulted in higher deficits and debt in 2003 and 2004. The government deficit in 2004 is estimated to have reached 5.3 percent of GDP and the debt 112 percent of GDP. The new administration has pledged to reduce the government debt to 2.8 percent of GDP in 2005 and to tighten fiscal finances.

The Greek economy was expected to grow by 3.7 percent in 2004 and continue relatively higher growth rates in 2005 and beyond. High growth rates resulted in a drop in unemployment although it is still high among younger persons. Foreign investment also has dropped, while efforts to revive it have been only partially successful. Greek investment in Southeast Europe has increased.

Services make up the largest and fastest-growing sector of the Greek economy. About 12 million tourists visited Greece in 2003 with net revenues of about 7.4 billion euros. Remittances from transport (mainly shipping) are growing at fast rates and in 2004 have been exceeding tourism receipts. Industrial activity has a mixed performance with certain sectors such as the food industry and high-tech/telecommunications showing healthy increases. Textiles are more affected by international competition. Agriculture employs about 12 percent of the work force and is still characterized by small farms and low capital investment, despite significant support from the EU in structural funds and subsidies. Traditionally a seafaring nation, the Greek-owned merchant fleet totaled 3,355 ships in May 2003, 9.3 percent of world merchant fleet and 18.3 percent of gross tonnage.

European Union (EU) Membership
Greece has realigned its economy as part of an extended transition to full EU membership that began in 1981. Greece last assumed the rotating EU presidency in the first half of 2003. Greek businesses continue to adjust to competition from EU firms, and the government has liberalized its economic and commercial regulations and practices.

Greece has been a net beneficiary of the EU budget; in 2003, EU transfers accounted for 2.8 percent of GDP and may have exceeded 3 percent of GDP in 2004. From 1994-99, about $20 billion in EU structural funds were spent on projects to modernize and develop Greece's transportation network in time for the Olympics in 2004. The centerpiece was the construction of the new international airport near Athens, which opened in March 2001 soon after the launch of the new Athens subway system.

EU transfers to Greece, under the third Community Support Framework Program, are to phase out over the next decade. The last of some $24 billion in structural funds will be disbursed by 2006. These funds contribute significantly to Greece's current accounts balance and further reduce the state budget deficit. EU funds will continue to finance major public works and economic development projects, upgrade competitiveness and human resources, improve living conditions, and address disparities between poorer and more developed regions of the country. A new support program may be implemented in the future.

U.S.-Greece Trade
In 2003, the U.S. trade surplus with Greece was about $1.9 billion. There are no significant non-tariff barriers to American exports. The United States accounted for 5.6 percent of Greece's imports in 2003, which reached $44.7 billion. The top U.S. exports remain defense contracts, although American business activity is expected to grow in the tourism development, medical, construction, food processing, and packaging and franchising sectors. U.S. companies are involved in Greece's ongoing privatization efforts; further deregulation of Greece's energy sector and the country's central location as a transportation hub for Europe may offer additional opportunities in electricity, gas, refinery, and related sectors.

Greece's foreign policy is aligned with that of its EU partners. Greece gives particular emphasis to its close relations with Cyprus but also has growing political and economic ties with the Balkan countries and the Middle East.

Greece maintains full diplomatic, political, and economic relations with its south-central European neighbors. It provides peacekeeping contingents for Bosnia, Kosovo and Afghanistan. Greece has good relations with Russia and has embassies in a number of the central Asian republics, which it sees as potentially important trading partners.

Prominent issues in Greek foreign policy include Greek-Turkish differences in the Aegean, Turkish accession to the EU, the name dispute with the Macedonia, the reunification of Cyprus and Greek-American relations. Starting in January 2005, Greece assumed a two-year seat on the U.N. Security Council.

The Greek dispute with its northern neighbor over its constitutional name, Republic of Macedonia, has been an important issue in Greek politics since 1992. Greece was adamantly opposed to the use of "Macedonia" by the government in Skopje, claiming that the term is intrinsically Greek and should not be used by a foreign country. Mediation efforts by the UN and the United States brokered an interim agreement whereby Greece recognized the country as the Former Yugoslav Republic of Macedonia (FYROM) in September 1995. Talks on the name question continue under UN auspices.

Greece restored diplomatic relations with Albania in 1971, but the Greek Government did not formally lift the state of war, declared during World War II, until 1987. After the fall of the Albanian communist regime in 1991, relations between Athens and Tirana became increasingly strained because of allegations of mistreatment of the Greek ethnic minority by Albanian authorities in southern Albania. A wave of Albanian illegal economic migrants to Greece exacerbated tensions. In the past several years, however, cooperation between Greece and Albania has improved, with efforts focused on regional issues, such as narcotics trafficking and illegal immigration. However, tensions hover just below the surface. Greece remains host to 600,000-800,000 Albanian immigrants, many of them illegal. Albanian crime in Greece often attracts headlines.

Greece-Turkey-Cyprus Relations
For historical reasons, most Greeks see Turkey as the major potential threat to their security. Greece and Turkey have unresolved disagreements regarding the Aegean,  the treatment of the Orthodox Church and Greek minority in Istanbul, and the Muslim (primarily ethnic Turkish) minority in western Thrace. The largest source of tension in their relationship since 1974 has been the Cyprus conflict. Only the Republic of Cyprus entered the EU on May 1, 2004, following a failed referendum on the Annan Plan. Greek Cypriots overwhelmingly rejected the plan, which could have allowed a united Cyprus to enter the EU. Turkish Cypriots voted in favor of the plan and both Greece and Turkey expressed their approval.

At times over the past three decades, tensions between Greece and Turkey have almost reached the point of armed confrontation, usually caused by one side or the other attempting to clarify an ambiguous status quo in the Aegean. In 1996, President Clinton intervened to help avert a possible armed exchange after Greek and Turkish journalists generated a dispute over ownership of an uninhabited rock called Imia. A significant breakthrough in relations took place with the major earthquakes that hit Turkey and Greece in 1999. Both countries and peoples responded generously to the other's need, helping turn around official perceptions that rapprochement was politically too risky. Since that time, Greek and Turkish Foreign Ministers George Papandreou and Ismail Cem (and their respective successors Petros Molyviatis and Abdullah Gul) have steadily increased the quantity and quality of bilateral exchanges, both official and unofficial.

Greece has endorsed and supported Turkey's bid for candidacy to the European Union since the Helsinki EU Summit in 1999. Despite continuing disagreements with Ankara over Cyprus and the Aegean, Greek opinion leaders across the political spectrum are convinced that Greece's long-term interests are best served by Turkey's successfully fulfilling the requirements for European Union membership. On December 17, 2004, the European Union voted to open accession talks with Turkey on October 3, 2005.

The Middle East
Greece claims a special interest in the Middle East because of its geographic position and its economic and historic ties to the area. Greece cooperated with allied forces during the 1990-91 Persian Gulf War. Since 1994, Greece has signed defense cooperation agreements with Israel and Egypt. In recent years, Greek leaders have hosted several meetings of Israeli and Palestinian politicians to contribute to the peace process. Greece has been traditionally supportive of Palestinian claims. However, beginning in the late 1990s, efforts to strike a more balanced relationship with Israel received a boost. Greek-Israeli relations have been complicated by Israel's strategic cooperation with Turkey.

The United States and Greece have longstanding historical, political, and cultural ties based on a common heritage, shared democratic values, and participation as Allies during World War II, the Korean conflict, and the Cold War. The Greek government responded to the September 11, 2001 attacks with strong political support for the United States, use of Greek airspace, and the offer of Greek military assets in support of the counterterrorism campaign. Its participation in Operation Enduring Freedom included the stationing of a Greek Navy frigate in the Arabian Sea for almost 2 years--the most distant deployment ever for the Greek Navy. In the summer of 2002, Greek authorities captured numerous suspected members of the terrorist group "17 November." It was a major break in the investigation of the group, which had killed five U.S. mission employees since 1975. The trial of the November 17 suspects successfully concluded in the fall of 2003.

There is smooth cooperation between U.S. and Greek counter-terrorism officials. Greek and American diplomatic, law enforcement, and intelligence agencies enjoyed close cooperation in the build-up to and throughout the 2004 Summer Olympic Games in Athens.

About 1.1 million Americans are of Greek origin, and almost 3 million call themselves Greek-Americans. This large, well-organized Greek-American community in the United States cultivates close political and cultural ties with Greece. Greece has the seventh-largest population of U.S. Social Security beneficiaries in the world.

The United States has provided Greece with more than $11.1 billion in economic and security assistance since 1946. Economic programs were phased out by 1962, but military financial assistance continued until the early 1990s.

In 1953, the first defense cooperation agreement between Greece and the United States was signed, providing for the establishment and operation of American military installations on Greek territory. The United States closed three of its four main bases in the 1990s. The current mutual defense cooperation agreement (MDCA) provides for the operation by the United States of a naval support facility that exploits the strategically located deep-water port and airfield at Souda Bay in Crete.

Principal U.S. Embassy Officials
Ambassador--Charles Ries
Acting Deputy Chief of Mission--Jeff Olesen
Management Counselor--Jeff Olesen
Regional Security Officer--Michael Darmiento
Political Counselor--Karen Decker
Acting Economic Counselor--Robert Winchester
Public Affairs Counselor--Barry Levin
Consul General-- Ann Sides
Acting Defense Attache--Col. Thomas Tutt
Commercial Counselor--Walter Hage
Principal Officer, Thessaloniki--Demitra Pappas
Agricultural Counselor--Geoffrey Wiggin (resident in Rome)

The U.S. Embassy in Greece is located at 91 Vasilissis Sophias Blvd., 10160 Athens; tel: [30] (210) 721-2951 or 721-8401, after hours 729-4444; fax: [30] (210) 645-6282. The U.S. Consulate General for Thessaloniki is located at 43 Tsimiski Street, 546-23 Thessaloniki; tel: [30] (2310) 242-905 or 721-2951, ext. 2400; fax: [30] (2310) 242-927, 242-924. The email address for the U.S. embassy is The embassy's website is


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