The welfare state and the crisis: the case of Greece

Abstract

The paper examines the relationship between the severe economic crisis facing Greece and the country’s social protection system, arguing that this relationship is ambivalent. On one level, the welfare state itself has contributed in a far from trivial way to the fiscal crisis of the state, with its various failures including huge deficits in key programmes such as pensions and health. On a second level, the crisis and the measures to counter it deprive the welfare state of resources, while at the same time setting in motion sweeping changes. On a third level, social protection can help cope with the consequences of the crisis, but enhancing its capacity to do so will require considerable reconfiguration and proper funding of social safety nets. The paper concludes by discussing the prospects for a revival of welfare state building in Greece in the current harsh climate.