Sisyphus’ Greek Spreadsheet Or Greece’s Economic Turmoil Corruption, Nepotism, and Authoritarianism Then and Now SiSyphuS’ Greek SpreadSheet Thanos Kalamidas Thanos Kalamidas An Ovi eBooks Publication 2025 Ovi eBookPublications - All material is copyright of the Ovi eBooks Publications & the writer C Ovi ebooks are available in Ovi/Ovi eBookshelves pages and they are for free. If somebody tries to sell you an Ovi book please contact us immediately. For details, contact: ovimagazine@yahoo.com No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the writer or the above publisher of this book Sisyphus’ Greek Spreadsheet Sisyphus’ Greek Spreadsheet Thanos Kalamidas Or Greece’s Economic Turmoil Corruption, Nepotism, and Authoritarianism Then and Now Thanos Kalamidas An Ovi eBooks Publication 2025 Ovi eBookPublications - All material is copyright of the Ovi eBooks Publications & the writer C Sisyphus’ Greek Spreadsheet Greece’s modern economic trajectory has been defined by cycles of prosperity, mismanagement, crisis, and recovery. The 2009 financial collapse was not an isolated event but rather the culmination of decades of systemic corruption, nepotism, favourit- ism, and an expansive black economy. Between 1980 and 2006, successive Greek governments, regardless of political affiliation, fostered an economic system riddled with clientelism, excessive public spending, tax evasion, and a deep-rooted culture of patronage. These structural weaknesses were masked by con- tinuous borrowing, european union subsidies, and an illusion of financial stability. When the global fi- nancial crisis of 2008 exposed these vulnerabilities, Greece was left with unsustainable debt, a collapsing banking system, and a government unable to meet its financial obligations. This led to the infamous 2010 bailout agreements, commonly referred to as the Memorandums, imposing harsh austerity measures that reshaped the socio-economic fabric of the na- tion. Thanos Kalamidas The following decade, marked by deep recession and mass public discontent, saw a slow and painful recovery. The implementation of austerity policies - higher taxes, pension cuts, and public sector layoffs, disproportionately affected the working and middle classes while the political elite largely remained un- scathed. By 2018, Greece formally exited the bailout programs, but the scars of the crisis remained evi- dent in the form of high unemployment, weakened public services, and a general loss of trust in political institutions. amidst this backdrop, kyriakos Mitsotakis and the New democracy party returned to power in 2019, promising economic revival, investment-friendly policies, and a departure from past inefficiencies. however, rather than addressing the fundamental issues that led to the original collapse, Mitsotakis’ governance has exacerbated many of them. his ad- ministration has been characterized by a resurgence of nepotism, where family members and political allies hold key positions of power, a reinforcement of favouritism in state contracts, and the deepening of authoritarian tendencies, including suppression of press freedom and illegal surveillance of politi- cal opponents. Simultaneously, economic inequality has worsened, with rising costs of living, stagnating Sisyphus’ Greek Spreadsheet wages, and increased financial hardship for average Greek citizens. This essay will examine Greece’s economic decline and recovery in six parts, exploring the entrenched corruption that led to the 2009 crisis, the harsh re- alities of the Memorandum years, the post-austerity struggle for stability, and the Mitsotakis adminis- tration’s role in perpetuating the very practices that once drove Greece to financial ruin. By tracing these patterns from past to present, this analysis aims to highlight the urgent need for systemic reform, great- er political accountability, and an economic strategy that prioritizes the welfare of the Greek people over elite interests. Thanos Kalamidas The Road to Bankruptcy (1980-2006) The years leading up to Greece’s bankruptcy in 2009 were marked by a combination of political, so- cial, and economic factors that laid the foundation for the country’s financial crisis. understanding the trajectory of Greece’s fiscal mismanagement and po- litical dysfunction during this period provides criti- cal insight into the roots of its eventual downfall. in this section, we will explore the political landscape dominated by political families, the role of economic mismanagement, systemic corruption, and the role of the black economy, all of which contributed to Greece’s unsustainable debt and financial collapse. The political environment in Greece during the 1980s and early 2000s was characterized by the dom- inance of political dynasties, primarily the papandre- ou family and the Mitsotakis family, who established themselves as pillars of Greek political life. The po- litical system was deeply influenced by clientelism, Sisyphus’ Greek Spreadsheet where parties maintained power by distributing pub- lic resources and jobs to loyal supporters. This form of governance led to an entrenched patronage system, which prioritized loyalty over merit and political ad- vancement over effective policy implementation. in 1981, andreas papandreou, the leader of the panhellenic Socialist Movement (paSOk), rose to power with promises of social reform and a populist agenda. his tenure marked a new era of increased state intervention in the economy, expanding pub- lic sector employment and increasing government spending. papandreou’s populist policies were aimed at addressing the needs of the working class and ru- ral populations, but they were not without significant economic consequences. The expansion of the pub- lic sector led to ballooning public sector wages, pen- sions, and social welfare programs, all of which put significant strain on the country’s finances. papandreou’s successor, Costas Simitis, took over as prime minister in 1996 and tried to balance fis- cal discipline with Greece’s aspirations to join the european union’s economic and Monetary union (eMu). While Simitis did implement some reforms, the state’s overspending continued unabated, as the patronage system continued to thrive and political Thanos Kalamidas favours were exchanged for electoral support. The political class, across both paSOk and New democ- racy (the opposing party led by the Mitsotakis fam- ily), remained focused on short-term political gains rather than long-term fiscal responsibility. This pat- tern of clientelism would become one of the central factors contributing to Greece’s eventual financial collapse. The economic mismanagement during this pe- riod can be attributed to both excessive borrowing and unsustainable government spending. By the late 1980s and early 1990s, Greece was faced with in- creasing fiscal deficits. rather than addressing these deficits through structural reforms, the government chose to borrow extensively to finance its spending programs, a pattern that would continue for decades. as the country entered the european union’s eco- nomic framework and set its sights on adopting the euro, Greece’s fiscal mismanagement became more pronounced. during the 1990s, Greece’s debt-to-Gdp ratio was rising rapidly, but the government continued to pur- sue a path of borrowing to fund public sector wag- es and pensions, infrastructure projects, and social welfare programs. as a result, Greece’s debt grew at Sisyphus’ Greek Spreadsheet an alarming rate. The government’s tendency to un- derreport actual fiscal data to the european union further exacerbated the issue. While Greece present- ed a facade of fiscal stability, the reality was much different. The country’s financial situation was much worse than had been officially reported, with inac- curate budgetary figures masking the true extent of Greece’s financial woes. The country’s infrastructure projects, such as the 2004 athens Olympic Games, further demonstrat- ed the economic mismanagement. While the Games were meant to serve as a showcase for Greece’s mod- ernization, the costs soared far beyond the initial estimates, with billions of euros spent on underper- forming infrastructure. These large-scale projects added more pressure to an already overstretched economy, contributing to the spiralling public debt. One of the most significant factors leading to Greece’s financial collapse was the deep-rooted cul- ture of corruption, nepotism, and favouritism within the political system. The system of patronage that had developed within Greece’s political elite had a pro- found effect on governance. political appointments were often based on connections rather than merit, and public sector jobs were seen as tools for political Thanos Kalamidas loyalty. This meant that efficiency, effectiveness, and accountability were regularly sacrificed in favour of rewarding loyal supporters. public sector wages became inflated as political parties sought to build loyal voter bases by hiring in- dividuals who would vote for them in exchange for public sector jobs. as a result, the public adminis- tration grew inefficient, bloated, and difficult to re- form. There was widespread embezzlement of funds, particularly at local and regional government levels, with public money often funnelled into the pockets of corrupt politicians, business people, and bureau- crats. The lack of transparency in government con- tracts, combined with the lack of accountability in public spending, allowed corruption to flourish. Nepotism played a particularly strong role in maintaining political power. it was not uncommon for political leaders to appoint family members and close friends to key positions within the government, including ministers, heads of state-owned enterpris- es, and local officials. These appointments were of- ten based on loyalty rather than competence. Con- sequently, decisions were made that favoured the interests of a few rather than those of the broader population, contributing to an overall environment of inefficiency and economic instability. Sisyphus’ Greek Spreadsheet Favouritism was particularly evident in the rela- tionship between the state and business interests. State-owned enterprises became a means of dis- tributing wealth to private contractors who enjoyed political favour. These businesses were often ineffi- cient, heavily subsidized by the state, and marked by a lack of competition, which prevented the economy from modernizing and becoming more productive. instead of pursuing policies that could lead to long- term economic growth, political elites prioritized se- curing short-term political gains, which kept them in power but ensured the country’s financial instability. The black economy in Greece also played a signifi- cant role in the country’s road to bankruptcy. The in- formal, unregulated economy grew significantly, and it became a defining feature of Greek economic life. The black economy encompassed everything from small-scale undeclared labour (such as construction and home repairs) to large-scale tax evasion by busi- nesses and wealthy individuals. tax evasion was pervasive in Greece during this period. Many people avoided paying taxes by under- reporting their income, working in the informal sec- tor, or engaging in outright fraud. This widespread evasion created a significant gap in Greece’s public Thanos Kalamidas finances. The country’s tax system was both com- plex and inefficient, and many citizens and business- es took advantage of the loopholes to avoid paying their fair share. estimates suggest that up to 30% of Greece’s economy operated in the black market, de- priving the government of much-needed revenue. The informal economy also played a role in under- mining Greece’s ability to modernize and become more competitive. The lack of regulation in certain sectors meant that businesses often operated out- side the legal framework, avoiding labour laws and environmental regulations, which in turn result- ed in lower productivity, a reduction in public ser- vices, and a growing inequality gap. The persistence of this shadow economy, especially in construction and tourism, added to the inefficiencies and made it harder for Greece to reform its economy and achieve sustained growth. additionally, the culture of tax evasion created a vicious cycle. The government’s inability to collect taxes forced it to borrow more to cover its spending. The growing debt burden, combined with corruption and inefficiency, led Greece further down the path toward bankruptcy. The period from 1980 to 2006 in Greece was Sisyphus’ Greek Spreadsheet marked by a toxic combination of political patron- age, economic mismanagement, entrenched corrup- tion, and a thriving black economy. These factors created a deeply unsustainable economic system, which ultimately contributed to Greece’s bankruptcy in 2009. While the country’s political elites continued to prioritize short-term political gains and clientelist relationships, they ignored the long-term health of the economy. The informal economy and widespread tax evasion only exacerbated these issues, leaving the country vulnerable when the global financial crisis struck. in the years that followed, Greece would be forced to face the consequences of decades of fiscal irresponsibility, leading to the austerity measures and memorandums that would shape its economic future for years to come. Thanos Kalamidas The Fall of Greece (2007-2009) The period leading up to Greece’s bankruptcy in 2009 was a tumultuous time for the nation, as the global financial crisis combined with deep-seated do- mestic issues, leading to a devastating economic col- lapse. This section will explore the final years before Greece’s bankruptcy, focusing on the convergence of the global crisis with the country’s internal struc- tural weaknesses, the inability to implement crucial reforms, and the role played by the political elite in driving the country into insurmountable debt. The global financial crisis of 2007-2008 had far-reaching consequences across the world, but its impact on Greece was especially severe. The interna- tional collapse, triggered by the collapse of Lehman Brothers and the subsequent downturn in global markets, revealed the weaknesses in the Greek econ- Sisyphus’ Greek Spreadsheet omy that had been papered over for years. Greece, having already been deeply entangled in a web of unsustainable debt, was ill-prepared to weather the storm. For years, Greece’s fiscal policies had relied heavily on borrowing to finance government spending. By 2007, Greece’s public debt had reached alarming lev- els, amounting to over 100% of its Gdp. This level of indebtedness, combined with the country’s persistent structural weaknesses, made it particularly vulnera- ble when the global economic downturn hit. With the collapse of Lehman Brothers and the drying up of international credit markets, Greece’s ability to refi- nance its growing debt was severely constrained. The country’s borrowing costs skyrocketed and investors began to question the sustainability of Greek debt. By late 2009, it became clear that Greece was fac- ing a financial disaster. The country’s deficit was far worse than the government had initially reported, and the country’s credit rating was downgraded to junk status by major credit rating agencies. The glob- al financial markets reacted with panic, and Greece was forced to admit that it could no longer meet its debt obligations. The financial crisis, combined with years of fiscal irresponsibility, had exposed Greece’s Thanos Kalamidas vulnerabilities, and the country’s economy teetered on the brink of collapse. One of the critical factors that contributed to Greece’s downfall was the country’s persistent failure to enact the structural reforms necessary to address its deep-rooted economic problems. despite repeat- ed warnings from the european union and inter- national organizations, Greece continued to avoid making the tough choices required to modernize its economy and reduce its reliance on unsustainable government spending. One of the most glaring examples of Greece’s fail- ure to reform was its refusal to privatize state-owned enterprises. Greece’s public sector was bloated, ineffi- cient, and heavily subsidized. Over the years, succes- sive governments promised to privatize state-owned companies and reduce the size of the public sector, but these promises were rarely followed through. politicians were unwilling to take on vested interests, especially unions that controlled much of the public sector. as a result, state-owned companies remained inefficient, draining taxpayer money, and contribut- ing to Greece’s fiscal deficit. additionally, Greece’s tax system was in dire need of reform. tax evasion was widespread, and the Sisyphus’ Greek Spreadsheet country had one of the lowest tax collection rates in europe. instead of addressing the issue through com- prehensive reforms to the tax code and improving enforcement, the Greek government continued to tolerate a system in which the wealthy and powerful were able to avoid paying their fair share. This lack of tax reform further exacerbated Greece’s financial woes, as the government was unable to generate suf- ficient revenue to meet its obligations. The pensions system was another area in need of reform. Greece’s pension system, one of the most generous in europe, was financially unsustainable. Successive governments had avoided addressing the system’s flaws, opting instead to promise more bene- fits to secure votes from older voters. as the popula- tion aged, the cost of maintaining these pension ben- efits became more burdensome, and the government was unable to find a way to balance the system. in short, Greece’s failure to implement the neces- sary economic reforms and reduce its reliance on debt left the country unprepared when the global fi- nancial crisis struck. The government’s failure to ad- dress the core issues—over-reliance on public sector spending, tax evasion, inefficient state-owned enter- prises, and an unsustainable pension system—ulti- mately doomed Greece’s economy. Thanos Kalamidas perhaps the most significant contributor to Greece’s financial collapse was the role played by the country’s political elite. For decades, Greece’s political class had been more focused on securing short-term political gains than addressing the country’s long-term fis- cal health. This was particularly evident in the years leading up to the 2009 crisis. The political elite, including leaders from both the Socialist paSOk party and the conservative New democracy party, were responsible for overseeing the country’s fiscal management during the criti- cal years. however, rather than making the difficult decisions required to reduce the deficit and address Greece’s structural weaknesses, political leaders con- tinued to prioritize policies that benefited their elec- toral base, even if those policies were economically unsustainable. in 2004, when New democracy’s kostas karaman- lis became prime minister, he inherited an economy already burdened with high levels of debt. however, rather than addressing Greece’s fiscal deficits, kara- manlis chose to cut taxes and increase public spend- ing in a bid to secure political favour. his government also continued the practice of underreporting the country’s fiscal deficits, which had become a routine