
Flag Description of Greece:
nine equal horizontal stripes of blue alternating with white; there is
a blue square in the upper hoist-side corner bearing a white cross;
the cross symbolizes Greek Orthodoxy, the established religion of the
country

Map of Greece
Geography of Greece
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), Iraklion (132,117), Larissa (113,090).
Terrain: Mountainous interior with coastal plains; 1,400-plus islands.
Climate: Mediterranean; mild, wet winter and hot, dry summer.
People of Greece
Population (July 2006 est.): 10,688,058 million. (Immigrants make up
approximately 10% of the population.)
Growth rate: 0.18%.
Languages: Greek 99% (official); Turkish, others. Albanian is spoken by
approximately 700,000 Albanian immigrants. English is the predominant second
language.
Religions: Greek Orthodox (approximately 98% of citizens), with Muslim (1.3%),
Jewish, Catholic, Protestant, and other religious communities.
Education: Years compulsory--9. Literacy--97.5%. All levels are
free.
Health: Infant mortality rate--5.43/1,000. Life expectancy--male
76.72 years, female 81.91 years.
Work force: 4.72 million.
Government of Greece
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 of Greece (2005 est.)
GDP: $236.8 billion.
Per capita GDP: $22,000.
Growth rate: 3.7%.
Inflation rate: 3.5%.
Unemployment rate: 9.9%.
Natural resources: Bauxite, lignite, magnesite, oil, marble.
Agriculture (5.4% of GDP): Products--sugar beets, wheat, maize, tomatoes,
olives, olive oil, grapes, raisins, wine, oranges, peaches, tobacco, cotton,
livestock, dairy products.
Manufacturing (21.3% of GDP): Types--processed foods, shoes, textiles,
metals, chemicals, electrical equipment, cement, glass, transport equipment,
petroleum products, construction, electrical power.
Services (73.3% of GDP): Transportation, tourism, communications, trade,
banking, public administration, defense.
Trade: Exports--$18.54 billion: manufactured goods, food and beverages,
petroleum products, cement, chemicals. Major markets--Germany, Italy,
France, U.S., U.K. Imports--$48.2 billion: basic manufactures, food and
animals, crude oil, chemicals, machinery, transport equipment. Major
suppliers--Germany, Italy, France, Japan, Netherlands, U.S.
PEOPLE of Greece
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. The roots of Greek language and culture date 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 centuries-old Muslim
religious minority concentrated in Thrace and an estimated 300,000 Muslim
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 despite the fact that their degrees are not
recognized by the Greek state. Entrance to public universities is determined by
state-administered exams.
HISTORY of Greece
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, gaining 158 seats to
ND's 125. Most recently, parliamentary elections were held March 8, 2004 and ND
won 165 seats to PASOK's 117; Konstantinos Karamanlis, ND leader and the nephew
of the former prime minister, became prime minister. Karolos Papoulias was
elected President by Parliament 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, which the PASOK government
began in 1997 and the New Democracy government of Karamanlis completed in 2004.
GOVERNMENT AND POLITICAL CONDITIONS of Greece
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 of Greece
President--Karolos Papoulias
Prime Minister--Konstantinos Karamanlis
Foreign Minister--Dora Bakoyannis
Ambassador to the United States--Alexandros Mallias
Ambassador to the United Nations--Yiannis Mourikis
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.
ECONOMY of Greece
Greece adopted the euro as its new common currency in January 2002. The adoption
of the euro provided Greece (formerly a high inflation risk country under the
drachma) with access to competitive loan rates and also to low rates of the
Eurobond market. This led to a dramatic increase in consumer spending which gave
a significant boost to economic growth. This credit also led to a more relaxed
fiscal policy starting in 2002, which, combined with expenditures associated
with the preparation of the Athens 2004 Olympics, resulted in excessive deficits
and debt in 2003 and 2004. The government deficit in 2004 is now estimated by
the Greek government to have reached 6.6% of GDP. As a result of lower
post-Olympic spending, the government deficit in 2005 is estimated to have been
lowered to 4.3% of GDP, with a debt to GDP ratio of 107.9%. The administration
pledged to reduce the government debt to 2.6% of GDP in 2006 and to tighten
fiscal finances, under an EC excessive deficit surveillance program.
The Greek economy is estimated to have grown by 3.6% in 2005 and similar
growth rates are projected through 2007. These growth rates resulted in a drop
in unemployment (to 9.8% in the second quarter of 2005 from 10.4% in the same
period in 2004), although it is still significantly higher among women and
people under 27. Unfortunately, foreign direct investment inflow has also
dropped, and efforts to revive it have been only partially successful. At the
same time, Greek investment in Southeast Europe has increased, leading to a net
FDI outflow in some years.
Services make up the largest and fastest-growing sector of the Greek economy.
About 14 million tourists were estimated to have visited Greece in 2005, with
net revenues of about 10 billion euros. Remittances from transport (mainly
shipping) are growing, and actually exceeded tourism receipts in 2004 and 2005.
Receipts from tourism and transport have covered a significant portion of
Greece's large trade deficit. Industrial activity has shown a mixed performance,
with certain sectors such as the food industry and high-tech/telecommunications
showing healthy increases, while textiles have declined. Agriculture employs
about 12% 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 3,338 ships in March 2005, 8.7% of the world merchant fleet and 16.5% of
world tonnage.
European Union (EU) Membership of Greece
Greece has realigned its economy as part of its transition to full EU membership
that began in 1981. Greece last held 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 major net beneficiary of the EU budget; in 2004, EU
transfers accounted for 3.6% of GDP and are estimated to have been approximately
3.2% of GDP in 2005. From 1994-99, about $20 billion in EU structural funds and
Greek national financing 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 continued with approximately $24 billion in structural
funds for the period 2000-2006. Unfortunately, bureaucratic obstacles have led
to significant delays in Greece's absorbing these funds, leading to the real
possibility that Greece may have to return a significant portion of them to the
EU. The same level of EU funding, $24 billion, has been allocated for Greece for
2007-2013. 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.
U.S.-Greece Trade
In 2004, the U.S. trade surplus with Greece was about $1.5 billion. There are no
significant non-tariff barriers to American exports. The United States accounted
for 4.4% of Greece's imports in 2004, which reached $52.6 billion. The top U.S.
exports remain defense articles, 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.
FOREIGN RELATIONS of Greece
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
Southeast European neighbors, except with Macedonia (see below), and regards
itself as a leader of the region's Euro-Atlantic integration process. 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 Macedonia, the
reunification of Cyprus, Kosovo final status arrangements and Greek-American
relations.
Macedonia
The Greek dispute with its northern neighbor over its constitutional name,
Republic of Macedonia, has been an important issue in Greek politics since 1992
and has inhibited the establishment of full diplomatic relations. 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.
Albania
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. Crime in Greece involving Albanians 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 maritime boundary, 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. Various UN-led efforts over the years to resolve
the issue on a bizonal, bicommunal basis have failed: the latest attempt, the
Annan Plan, was overwhelmingly rejected by Greek Cypriots in March 2004. Turkish
Cypriots voted in favor of the plan and both Greece and Turkey expressed their
approval. The Republic of Cyprus entered the EU on May 1, 2004 as a divided
island. The UN is currently assessing whether the political will exists among
the interested parties to restart negotiations.
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 a tiny,
uninhabited islet called Imia (Kardak in Turkish.) A significant breakthrough in
relations took place when major earthquakes 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 too risky politically. Since
that time, Greek and Turkish Foreign Ministers have 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 membership and
joining the European Union. The EU opened 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. Israeli
President Moshe Katsav visited Greece in 2006, the first-ever official visit by
an Israeli head of state.
U.S.-GREECE RELATIONS
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
for the Greek Navy since WWII.
In the summer of 2002, Greek authorities captured numerous suspected members
of the terrorist group "November 17." In 2003, 15 members of the terrorist
organization, which since 1975 had killed many prominent Greeks and five U.S.
mission employees, were found guilty and convicted for more than 2,500 crimes,
including multiple counts of homicide. In December 2005, a three-judge panel
opened an appeals trial for the November 17 convicts.
There is smooth cooperation between U.S. and Greek counter-terrorism
officials. Greek and American diplomatic, law enforcement, and intelligence
agencies worked closely together in the build-up to and throughout the 2004
Summer Olympic Games in Athens. In January 2006, the United States and Greece
signed protocols updating treaties covering extradition and mutual legal
assistance, which further strengthened this cooperation.
An estimated three million Americans resident in the United States claim
Greek descent. This large, well-organized community cultivates close political
and cultural ties with Greece. There are approximately 90,000 to 100,000
American Citizens resident in 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.
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