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Economic Governance of a Populist Government

From the Fear of Grexit to Continued Instability

In: Southeastern Europe
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  • 1 Department of Economics, University of the Peloponnese, Tripolis, Greece, liargova@uop.gr
  • | 2 Department of Economics and Business, Neapolis University Pafos, Paphos, Cyprus, n.apostolopoulos@nup.ac.cy
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Abstract

The focus of this article is on the main aspects of economic governance in Greece during the period 2015–19 where the syriza-anel coalition party was in power. In August 2015, the syriza-anel government faced the dilemma either to accept a new agreement with the EU partners (as eventually happened) or go bankrupt and leave the Eurozone, becoming detached from EU solidarity mechanisms. A third program was agreed, offering Greece an additional €86 billion loan over a three-year period. The third programme was unnecessary considering that the syriza-anel governance inherited 0.8% growth rate and some progress in the structural reforms demanded during the first two agreements in 2010 and 2011. However, the political choices made had the consequence of Greece returning to recession in 2015 and 2016.

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