My name is Iliana Diamanti and I am the
group leader
My partners are :
• Xrisanthi Vasiliadi
• Christina Kakoulaki
• Stavros Prassos
Greek economic crisis
 High fiscal deficit
 Irresponsible management of public expenditure
 Large imports over exports
 Low competitiveness
 Dysfunctionality of the labor market
 Economic reforms under
 the supervision of the TROIKA
Transformation of
public sector
 Should be transformed from an institution of hiring
party supporters to a new one that will work only
productive and efficient employees
 Transformation from an old unproductive public
sector to a new efficient provider of services
 Financial rewarding
 Rapid increase of debt in 1980
 Slower increase during 1990-2009

Table 1: Government debt (Source: OECD)
Year
1980
1990
Gov. debt as %
of GDP

26
71
2000
2009
101,5
115,1
(1st May of 2010) the Greek government with prime minister
George Papandreou decided to sign on a large EU/IMF loan package
 3 years package
 Volume of 110 billion euro
 High interest rate 5.5%
These led EU/IMF to recreate a a 2nd bailout loan
package in July of 2011. This package was known at the
2nd memorandum
 Memorandum II features :
 Volume of 100 billion euro
 Repayment period from 7 to 15 years
 Interest rate decrease to 3.5%
This package was also accompanied again by austerity
measures which were focused again in the size of
public sector by making the great crisis more severe.
 Low effectiveness of education relative to the
European average
Table 3:: Measures of outputs in education
PISA score
reading
PISA score PISA score
mathemat science
ics
Number of
universities
Greece
460
459
473
2
EU27
average
492
498
500
4
 But how we reach this evolution of the Greek public
sector ?
 The 1st is that Greek should be adjusted to foreign
practices promoting meritocracy and trust
 The 2nd one promotes the alignment of the evaluators
and of those who will be evaluated , interest
The total wage bill in the Greek public sector is actually
higher than the European average
For example ,
 In 2007 Greece spent the 11,2% of GDP ( Gross
Domestic Product ) for the payment of civil servants
,while the European Average was 10,4 of GDP
However, this difference is not significant when it is
placed in a wider content
For example ,
 Sweden spent the 15% of GDP.
 Creating tougher penalities
 Modernize the old one accounting practices
 Relationship between government and citizens should
be simplified and more anonymous
 Change attitudes and social behavior
Fighting tax evasion