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EACEA National Policies Platform:Eurydice
Political and economic situation

Greece

1.Political, Social and Economic Background and Trends

1.4Political and economic situation

Last update: 9 June 2022

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.

Greece applies the New Architecture of Local Authorities and Decentralised Administration – "Kallikratis" Programme (2011).  "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 recent Law 4555/2018  which aims 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 Democraty” to victory in the Greek parliamantery elections in July 2019.

Economic situation

Economic Situation 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 with the International Monetary Fund (IMF), the European Union (EU) and the European Central Bank (ECB) in order to receive assistance for reducing its debt. August 2018 marked the typical exit from the Memorandum.

Investment and expenditure

The following table presents investment and expenditure data regarding education.

Education Expenditure as % of GDP (In current Prices)
 20002005200920152016

Total expenditure

- private

- public

6,208

1,831

4,376

9,753

2,823

6,930

12,166

3,476

8,690

8,989

2,505

6,484

8,705

2,364

6,340

Investment on education1,4621,5981,3961,1911,172

Total expenditure on education

(consumption and investments)

7,67011,35213,56210,1799,877
Gross Domestic Product (GDP)141,247199,242237,534176,312174,199
Expenditure on Education as % of GDP5.43%5.70%5.71%5.77%5.67%

Source: ELSTAT 2016

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.

Educational attainment level

The following figure presents adult population attainment levels for years 2000, 2005 and 2015.

Educational Attainment Level
 200020052015
Population 18 years and over8,393,3598,948,2528,906,024
ISCED0774,738645,158391,583
ISCED12,916,0542,713,9652,152,403
ISCED2787,995866,225826,724
ISCED32,362,6782,717,5422,943,339
ISCED4436,657548,827595,370
ISCED51,106,3611,433,7891,956,829
ISCED68,87622,74639,776

Source: Hellenic Statistical Authority (ELSTAT), Population and Labour Market Statistics Division, 2016