Greece Update
Carol Migdalovitz
Specialist in Middle Eastern Affairs
August 25, 2009
Congressional Research Service
7-5700
www.crs.gov
RS21855
CRS Report for Congress
P
repared for Members and Committees of Congress

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Greece Update

Summary
In June 2009, the conservative New Democracy (ND) party, in power since 2004, experienced
losses in the elections for the European Parliament and it is having to respond to the
consequences of an economic downturn that may be prolonged. Kostas Karamanlis, who is ND’s
leader and Greece’s Prime Minister, continues to advocate for economic reforms to enhance
growth and create jobs. The government’s foreign policy focuses on the European Union (EU),
sometimes strained relations with Turkey, reunifying Cyprus, resolving a dispute with Macedonia
over its name, other Balkan issues, and sustaining good relations with the United States. Greece
has assisted with the war on terrorism, but is not a member of the U.S.-led coalition in Iraq and
has a limited presence with NATO in Afghanistan. See also CRS Report RL33497, Cyprus: Status
of U.N. Negotiations and Related Issues, by Carol Migdalovitz.


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Contents
Government and Politics ............................................................................................................. 1
Economy .................................................................................................................................... 3
Terrorism .................................................................................................................................... 3
Foreign Policy............................................................................................................................. 4
Cyprus .................................................................................................................................. 4
Turkey .................................................................................................................................. 5
Macedonia ............................................................................................................................ 5
Other Regional Issues ........................................................................................................... 7
Afghanistan .......................................................................................................................... 7
Relations with the United States ............................................................................................ 8

Tables
Table 1. Results of September 16, 2007 Greek National Election................................................. 1
Table 2. Results of June 7, 2009 European Parliament Elections .................................................. 2

Contacts
Author Contact Information ...................................................................................................... 10

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Government and Politics
The Greek city-state of Athens is believed to have developed the first known democracy around
500 B.C. Modern Greece has been a democracy since the toppling of a military junta in 1974.
Since then, two large parties have alternated leadership of the government: the New Democracy
(ND) party and the PanHellenic Socialist Movement (PASOK). ND has been in power since
March 2004. Prime Minister Kostas Karamanlis called for early parliamentary elections to be
held on September 16, 2007, instead of in March 2008 as scheduled, believing that his
government’s economic record would ensure easy reelection. That August, however, Greece
experienced severe and widespread wildfires, resulting in 76 deaths and 270,000 hectares burned.
The government’s performance during the crisis was widely viewed as ineffective.1 The fires
followed a scandal over the state pension fund’s purchase of government bonds at inflated prices.
Under these circumstances, ND’s ability to win a slim majority of 152 seats in the unicameral
300-seat parliament and four more years in office was viewed as a victory. PASOK also suffered
losses, while three small parties on the left and right registered significant gains and won seats.
One of these, the ultra-nationalist, anti-immigrant Popular Reforming and Orthodox Rally
(LAOS) party, entered parliament for the first time.
Table 1. Results of September 16, 2007 Greek National Election

Party
Percent of Votes Seats Change
New Democracy (ND)
41.83
152
-13
PanHellenic Socialist Movement (PASOK)
38.10
102
-15
Communist Party (KKE)
8.15
22
+10
Coalition of the Radical Left (SYRIZA)
5.04
14
+8
Popular Reforming and Orthodox Rally (LAOS)
3.80
10
+10

On September 18, 2007, Prime Minister Karamanlis announced a new, smaller cabinet. He
abolished the Public Order Ministry, which had been responsible for fighting fires among other
tasks, and merged it with the Interior Ministry. Foreign Minister Dora Bakoyannis, Minister of
Finance and the Economy George Alogoskoufis, and Defense Minister Evangelos Meimarakis
retained their key posts.
Nonetheless, since the 2007 election, ND has lost one seat in parliament and its position has
declined due partly to a series of corruption scandals, a crisis of law and order, and the economic
situation. An ongoing scandal over the Siemans group’s alleged bribery of politicians and officials
sullied both major parties. Then, in September 2008, Merchant Marine Minister George
Voulgarakis resigned amid allegations that government ministers had helped a monastery trade
inexpensive land for prime real estate, at a cost of an estimated $130 million to the government.
In October, the same scandal led to the resignation of State Minister and government spokesman
Theodoros Roussopoulos, a close Karamanlis associate.

1 Jeffrey Stinson, Joanna Kakissis, “Deadly Fires Take Toll on Greece's Spirit,” USA Today, August 31, 2007.
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Perhaps even more significantly, the government’s ability to ensure public security came into
question. In December 2008, police fatally shot a teenage boy, provoking days of violent protests
by anarchists, students, and labor groups in Athens and elsewhere. It was the worst rioting in
years and its duration was generally attributed to socio-economic causes, i.e., the youths’ lack of
hope and joblessness, although a culture of impunity also was blamed.2 Critics castigated the
government for its passive response and slowness in reestablishing law and order.3 In June 2009,
the murder of a police officer who was a member of the counterterrorism squad protecting a
witness in a trial involving a terrorist group again highlighted the government’s deficiencies in
this area.
PASOK has been ahead of ND in public opinion polls in 2008 and 2009, and its leader, George
Papandreou, repeatedly calls for early elections. In January 2009, Prime Minister Karamanlis
reshuffled his cabinet, leaving Bakoyannis at the Foreign Ministry, Meimarakis at Defense, and
Pavlopoulos at Interior, but replacing Minister of Finance and the Economy Algoskoufis with his
deputy Yiannis Papathanassiou and Minister of Development Christos Folias with Costas
Hatzidakis, who had been at Transport, among other changes. However, these moves did not
produce noticeable gains for ND in opinion polls or benefit it in the European Parliament
elections in June, when PASOK came in first and the LAOS registered striking gains since the
2007 national elections.
Table 2. Results of June 7, 2009 European Parliament Elections

Percent of
Party
Votes
Pan-Hel enic Socialist Movement (PASOK)
36.65%
New Democracy (ND)
32.29%
Communist Party (KKE)
8.35%
Popular Reforming and Orthodox Ral y (LAOS)
7.15%
Coalition of the Radical Left (SYRIZA)
4.7%
Greens 3.49%




Note: The Greens are not represented in the Greek parliament.

In February 2005, former Foreign Minister Karolos Papoulias, the ND consensus candidate and a
founding member of the opposition PASOK, won the presidency with 279 out of 296 votes cast in
parliament. His term expires in 2010, and ND supports his re-election. The President is head of
state, but the prime minister is head of government and exercises most powers.

2 Iason Athanasiadhis, in “An ‘Ungovernable’ Democracy?” Toronto Star, December 16, 2008, says that
unemployment among university graduates under 30 is 28%. Also, Dr. Stathis Kalyvas presentation on The Greek
Riots: A Political and Historical Analysis, at the Woodrow Wilson Center for International Scholars, January 22, 2009.
3 For example, Takis Michas, “Greece is Burning,” Wall Street Journal, December 12, 2008, and Rachel Donadio,
Anthee Carassava, “A Revolt in Greece, or Just Poor Security? Sense of Government Neglect is Pervasive,”
International Herald Tribune, December 13, 2008. Some suggest that the “culture of impunity” followed the military
junta’s brutal crackdown of student protests at the National Polytechnic University in 1973. Later democratic
governments have been reluctant to deploy even less forceful measures against demonstrators, and university campuses
have become “no-go” zones for security forces.
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Economy
Greece has a mixed capitalist economy, with the public sector accounting for about 40% of the
gross domestic product (GDP). In its first term, the ND government cut the budget deficit and
taxes on corporations, and was able to raise tax revenues due to an average annual growth rate of
4% and a crackdown on tax evasion. Unemployment decreased at first, but 20% of the population
remained below the poverty level.4 ND also passed some social security reforms, despite political
opposition and labor protests.
Greece sustained its growth due to booms in tourism and shipping. (Greece has the largest
merchant marine in the world.) It also plans to ensure its own energy security as well as become
a major “energy corridor” with the Turkish-Greece-Italy (TGI) natural gas pipeline, the Burgas
(Bulgaria)-Alexandroupolis oil pipeline, and the South Stream natural gas pipeline from Russia to
Europe.
However, Greece is now experiencing the
effects of the global financial crisis and
Basic Facts
recession, which has hurt shipping and
Population: 10.7 million (2009 est.)
tourism among other key sectors. The
Gross Domestic Product Per Capita: $32,000 (2008 est.)
International Monetary Fund (IMF) predicts
that its GDP will shrink 1.7% this year.
GDP Growth Rate: 2.8% (2008 est.)
Almost all industrial sectors have seen
Unemployment Rate: 9.4% (April 2009 est.)
declines. Unemployment hit 9.4% in April
Inflation Rate: 4.4% (2008 est.)
2009 and is expected to grow. The current
account deficit is 14% of GDP, the highest in
Exports: food and beverages, manufactured goods,
petroleum products, chemicals, textiles
the European Union (EU). The EU Financial
Ministers have warned Greece to get its deficit
Export Partners: Germany, Italy, Cyprus, Bulgaria, United
under control or face sanctions. The
Kingdom
government has extended extraordinary
Imports: machinery, transport equipment, fuels,
support to the banking sector to ease the credit
chemicals
crisis and taken other steps, but some analysts
Import Partners: Germany, Italy, Russia, France, China,
suggest that it has done too little, too late.
Netherlands
Currency: euro
The economy benefits from Greece’s
Source: CIA, The World Factbook, June 30, 2009, Greek
membership in the EU and the euro zone, and
National Statistical Service..
this may somewhat cushion the downturn.
Greece received an estimated $8 billion

annually from the EU between 2000 and 2006
and will receive another $24 billion for 2007-2013. Participation in the euro zone is believed
responsible for controlling inflation.
Terrorism
Greek authorities have worked to dismantle two main domestic terrorist groups, the
Revolutionary Organization 17 November (17N) and Revolutionary Popular Struggle (ELA). The

4 Anthee Carassava, “Early Greek Election Keyed to Economy,” International Herald Tribune, August 18, 2007.
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U.S. State Department lists 17N, which was responsible for the murders of five U.S. embassy
employees in Athens, beginning with CIA station chief Richard Welch in 1975, as a Foreign
Terrorist Organization (FTO).5 Although arrests and convictions of 17N leaders and members
have been made since 2002, retrials and acquittals have led to the release of some of those
convicted. Neither 17N nor ELA has been active for several years. Possible copycats, successor
groups, or renamed cells of the older groups such as Revolutionary Struggle (EA) and Popular
Revolutionary Action (LED) are active as are small anarchist and anti-globalization groups which
operate mainly in the Athens area. A January 12, 2007, rocket-propelled grenade attack on the
U.S. Embassy in Athens caused no casualties and did little material damage. EA claimed
responsibility.
In June 2004, parliament passed a law to implement the common EU counter-terrorism policy. In
January 2006, Greece began using new, more secure passports with biometrics to comply with
EU regulations and executing EU-wide arrest warrants. It also ratified the extradition agreement
between the United States and EU. The Greek navy participates in Operation Active Endeavor,
NATO’s antiterrorism ship monitoring effort in the Mediterranean Sea.
Foreign Policy
Greece is a member of the EU and NATO. In addition to participating in NATO’s Operation
Active Endeavor and the International Security Assistance Force in Afghanistan, Greece also is
engaged in EU missions such as the EU Military Force in Bosnia and Herzegovina (EUFOR -
Operation ALTHEA) and the EU Rule of Law Mission in Kosovo (EULEX). It also has military
observers as part of an Organization for Security and Cooperation in Europe (OSCE) force in
Georgia and, in January 2009, Greece assumed the rotating presidency of that organization.
Cyprus
The Republic of Cyprus has been partitioned between the Greek Cypriot south and the Turkish
Cypriot north since Turkish forces invaded in 1974 in response to a coup on the island backed by
the Greek junta, which favored uniting Cyprus and Greece. Greece strongly supports its Greek
Cypriot ethnic kin in their efforts to reunify the island. In November 2002, U.N. Secretary
General Kofi Annan offered a draft settlement plan to unite Greek Cypriots and Turkish Cypriots
in a loosely federated United Republic of Cyprus. Prime Minister Karamanlis cautiously stated on
April 15, 2004, that the plan’s “positive points can prove to be superior to the negative ones,”
adding that it was up to the Cypriots to decide and that Greece would support their decision.6 On
April 24, 76% of Greek Cypriots rejected the “Annan Plan,” while 65% of Turkish Cypriots
accepted it. The settlement process then stalemated. In July 2005, Turkey extended its customs
union with the EU to all new members, including Cyprus, but did not recognize the Republic of
Cyprus or open its ports to Greek Cypriot ships. Greece has seconded the Greek Cypriots’
demand that Turkey recognize Cyprus de jure and fully implement the customs union. It
welcomed the renewal of the settlement process in March 2008, and has supported Republic of

5 U.S. State Department, Country Reports on Terrorism 2008, released on April 30, 2009..
6 “Greek Prime Minister Announces Government Stand on Annan Plan, Cyprus,” NET Television, April 4, 2004, Open
Source Center Document GMP20040415000150.
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Cyprus President Dimitris Christofias in his direct talks with Turkish Cypriot leader Mehmet Ali
Talat, which have been conducted under U.N. auspices since September 2008.
Turkey
Greece secured its independence from the Ottoman Empire, the precursor of modern day Turkey,
in 1832. The two neighbors historically have had strained relations, but began a period of
rapprochement in 1999. In order for Turkey to become a more stable and peaceful democracy,
Athens supports Turkey’s full membership in the EU if it meets EU standards. Greece and
Turkey share interests in regional peace, growing bilateral trade ($2.8 billion in 2008), a natural
gas pipeline, and combating terrorism and illegal immigration. Greece is now the fourth largest
investor in Turkey. In 2006, the National Bank of Greece purchased Turkey’s fifth largest bank
for $2 billion. Prime Minister Karamanlis visited Turkey in January 2008, becoming the first
Greek prime minister to visit in almost 49 years.
However, a number of issues remain impediments to greater progress in normalizing bilateral
relations. They include the unresolved Cyprus dispute, the failure of Ankara to authorize the
reopening of the Greek Orthodox Theological Seminary on the Turkish island of Halki and its
refusal to recognize the ecumenical (worldwide) status of the Greek Orthodox Patriarch whose
seat is in Istanbul, and what some Greeks consider Turkey’s suspicious advocacy and political
support for Muslims of Turkish origin in Greek Thrace.
Sharp differences over Aegean Sea sovereignty issues produced major crises in 1987 and 1996
that appeared to bring the two neighbors to the brink of military conflict. In order to avoid
similar developments in the future, Greece and Turkey have held many rounds of exploratory
talks concerning disputes over air space, territorial seas, continental shelf, and related issues over
several years. Greece is determined to resolve all disagreements with Turkey, but it did not take
them to the International Court of Justice (ICJ) in December 2004, as proposed at the 1999 EU
summit in Helsinki which reaffirmed Turkey’s candidacy for EU membership. Greece accepts the
Court’s jurisdiction, but Turkey does not. Greece officially recognizes only a dispute over the
continental shelf and, in July 2009, its Foreign Ministry reiterated readiness to refer that one issue
to the Court. Athens also wants Ankara to rescind a 1995 casus belli parliamentary authorization
of any steps, including military ones, if Greece exercises a right to a 12-mile territorial sea as
allowed under the Law of the Sea Treaty. Greece is a signatory of the Treaty; Turkey is not. In
addition, Greece objects to Turkey’s repeated infringements of Greece’s claimed 10-mile air
space over the Aegean and to Turkish commanders’ references to (Greek) Aegean islands/islets
not named in treaties as “gray zones” that must be demilitarized. Territorial disputes appear to be
surfacing more frequently and serve to highlight the continuing lack of a solution. Some emanate
from each country’s desire to explore for oil.
Macedonia
The former Yugoslav republic of Macedonia declared its independence in 1991. Its territory
covers 39% of the historic region of Macedonia; the remaining 51% is in Greece and 9% is in
Bulgaria. Macedonia asserts its right to use and be recognized by its constitutional name, the
Republic of Macedonia. Greece objects, claiming that the name usurps Greece’s heritage and
conveys irredentist ambitions against Greece’s largest province, also called “Macedonia,” which
borders the former Yugoslav republic. Due to Greek objections, Macedonia joined the U.N. in
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1992 under the provisional name of The Former Yugoslav Republic of Macedonia (FYROM),
which is how Greece refers to it.
In 1995, Athens and Skopje signed an interim agreement to normalize relations and settle all
outstanding disputes except for the name, and Greece ended an 18-month long trade blockade of
FYROM.7 Since then, officials of both governments have met with the U.N. Secretary General’s
personal envoy, U.S. lawyer Matthew Nimetz, to discuss the name, but have not reached a
mutually acceptable solution. Greek officials call for a compromise composite name with a clear
geographic qualifier, e.g. Republic of Northern Macedonia, to be used internationally.8 They
reject the suggestion that one name be used solely in Greek-Macedonian bilateral relations and
another internationally.
In April 2008, Greece, whose position is “no solution means no invitation” for Macedonia to join
NATO and the EU, prevented NATO from reaching a consensus on extending an invitation to
Macedonia to join the alliance because no solution to the name dispute had been found. Athens
argued that, because of that situation, Macedonia had failed to meet what Greece said was the
criterion of “good neighborliness” required of new NATO members. Greek political parties and
the Greek public generally support the government’s position, but the international trend in name
usage favors Macedonia, with 120 governments recognizing it as the Republic of Macedonia.
Despite the name problem, Greece is the top investor in the FYROM and bilateral trade is strong.
In seeking to influence Skopje to break the impasse in the talks, Foreign Minister Bakoyannis has
said that if a solution is reached, Greece would allocate €75 million (U.S.$100 million) toward
construction of a highway linking the FYROM with Greece to the south and the EU, via Serbia,
to the north, and provide financing for small businesses in the FYROM to create jobs. She also
stated that Greece would gradually abolish visa requirements for FYROM citizens.9
At the same time, Macedonian Prime Minister Nikola Gruevski has appeared to exacerbate
bilateral relations with a spate of actions. In July 2008, he sent a letter to Prime Minister
Karamanlis calling on him to recognize a “Macedonian minority” in Greece, with a basic right to
be educated in its mother tongue (Macedonian).10 Greece recognizes only a Muslim minority as
called for in the 1923 Treaty of Lausanne and described the letter as “provocative.” Foreign
Minister Bakoyannis charged that Gruevski was “trying to deliberately undermine” the name
negotiations by inserting onto the agenda an “alleged Macedonian minority,” whose existence
Greece does not recognize.11 In his reply, Karamanlis declared, “There is no ‘Macedonian’
minority,” and called on Gruevski to leave behind “nationalist formulas of a bygone era.”12 A
month later, Gruevski wrote to the U.N. Secretary General and to Nimetz, requesting that
recognition of the Macedonian Orthodox Church be included in the name discussions. Nimetz
said, “We are dealing with the name of the country and (not) ... with the national or with other

7 For text, see http://untreaty.un.org/unts/120001_144071/6/3/00004456.pdf.
8 “Greek Government Faces Difficult Political Choices on Macedonia Naming Issue,” To Vima, October 17, 2007,
Open Source Center Document EUP20071021143001.
9 Athens News Agency,-Macedonian Press Agency (ANA-MPA) Daily News Bulletin, April 21, 2008.
10 Text of letter, “Gruevski’s Letter to Karamanlis – I Expect You to Take Measures in Amending Injustice Cause to
Greek-Born Ethnic Macedonians” MIA (Skopje), July 14, 1008, Open Source Center Document EUP20080714107009.
11 “FM on Gruevski Letter,” ANA-MPA, July 15, 2009.
12 Text of letter, “PM Karamanlis’ Letter of Reply to FYROM Counterpart Released,” ANA-MPA, July 18, 2008.
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personal identities of people.”13 Finally, in November, Macedonia filed a complaint with the
International Court of Justice (ICJ) charging that Greece had violated the 1995 Interim Accord
because Article 11 obliged it not to object to Macedonia’s application to international
organizations of which Greece is a member, e.g., NATO. Greece said that it would respond with
evidence that Skopje has failed to adhere to the 1995 agreement.
Other Regional Issues
Greeks and Serbs have particularly close ties based on their common Orthodox Christianity, their
alliance during the 20th century Balkan wars, and Greek empathy during the division of
Yugoslavia. Greece hopes that Serbia and all of its Balkan neighbors eventually will become EU
members in order to strengthen regional stability. Greece sought a U.N. Security Council-
legitimized, mutually acceptable agreement on Kosovo to reassure Serbia and protect Kosovar
Serbs.14 Therefore, it opposed Kosovo’s unilateral declaration of independence – perhaps also
wary that it might set a precedent for northern Cyprus. Athens has a liaison office and not an
embassy in Pristina, as it still does not recognize Kosovo’s independence.
Greece sent a 20-member military team to join an OSCE observer force in Georgia in August
2008, in the aftermath of the Georgia-Russia conflict. Athens did not recognize the Russian-
backed independence of the secessionist Georgian regions of South Ossetia and Abhazia.
Greece’s policies towards Kosovo, South Ossetia, and Abhazia, and to a great extent Cyprus, are
consistent with its support for the inviolability of international borders.
Afghanistan
The European Council on Foreign Relations lists Greece among the countries that have
“underperformed” in Afghanistan.15 According to the International Institute of Strategic Studies’
Military Balance, 2009, Greece has an engineering company of 137 soldiers and one C-130
Hercules transport aircraft in Afghanistan. Defense Minister Meimarakis has said that Greece is
unable to send more troops or equipment to Afghanistan because of its own defense
commitments, which usually refers to confronting a perceived threat from fellow NATO member
Turkey.
Perhaps as a gesture to President Obama, on April 4, 2009, Prime Minister Karamanlis restated
future plans for additional support in Afghanistan that had already been in motion. A Greek
mechanized company will assume command of Kabul International Airport in 2010, with a
reinforced strength of 30-40 officers. Until then, seven Greek soldiers will be sent to assist other
international forces already at the airport. If and when the airport is transferred to the Afghans, the
mechanized company will move to the Herat region under Italian command. Greek officials
suggest that these forces then would be closer to combat because more armed clashes occur in
Herat. A battalion specialized in bridge construction already has deployed. In addition, Greece
will return a medical unit to the field and a special unit will deploy to Kabul to train Afghan
police officers. Athens has allocated 48 older Leopard tanks for Afghanistan, but lacks the funds

13 P. Panagiotou, “Nimetz Statements on FYROM Name Issue,” ANA-MPA, September 24, 2008.
14 M. Aroni, “FM Bakoyannis Says Greece Will Decide at ‘Later Stage’ on Kosovo,’” ANA, February 18, 2008.
15 Daniel Korski, “Shaping Europe’s Afghan Surge,” Policy Brief, European Council on Foreign Relations, March
2009.
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to transport them there.16 Meimarakis also has said that Greece is willing to train Afghan soldiers
in Greece.
On March 31, 2009, Foreign Minister Bakoyannis called for a more prominent civilian presence
in Afghanistan to assist with education, culture, economic development, and agriculture. She did
not offer a financial contribution to address these needs; some Greek non-governmental
organizations are involved in such programs.
Relations with the United States
U.S.-Greek bilateral relations are good and are based on historical, political, cultural, military,
economic, and personal ties. The active, well-organized Greek-American community advocates
pro-Greek positions and seeks close U.S.-Greek ties. The State Department refers to Greece as a
“strategic partner” and Greece and the United States share interests in stability in southeastern
Europe. Since the 1960’s, the United States has operated a Naval Support Activity for the United
States and NATO at Souda Bay on the Greek island of Crete under the terms of a mutual defense
cooperation agreement (MDCA). The activity is a tenant of the Hellenic Air Force and supports
U.S. Sixth Fleet Aircraft, U.S. Navy Air Detachments deployed at Souda, and transient U.S.
military aircraft. In addition, an estimated 430 U.S. ships to visit the base annually for servicing.
A NATO Missile Firing Installation, used for testing, is located nearby.
The Greek government responded to the September 11, 2001 terrorist attacks on the United States
with strong political support, unimpeded U.S. and coalition use of Greek airspace, and military
assets for counterterrorism. Like some other EU countries, Greece does not view the war in Iraq
as part of the war against terror and is not part of the coalition there. It refused to participate in
training the Iraqi army in either Iraq or Greece and, along with five other EU member countries,
refused to allow its military personnel assigned to NATO’s international command staff to join a
senior officer training mission in Iraq. It did, however, send military personnel to train Iraqis at a
camp in Bulgaria and 100 BMP-1 armored personnel carriers to Iraq to help equip the Iraqi armed
forces. It also contributed financially to the cost of training Iraqi police and provided Greek
commercial ships to transport NATO military equipment to Iraq. In addition, Greece provided
some humanitarian and development assistance to Iraq.
Aid has not been a major element in the bilateral relationship since the 1990’s. In response to the
2007 wildfires, the U.S. Agency for International Development Office of Foreign Disaster
Assistance (OFDA) provided more than $600,000 in emergency aid and $1.35 million through
agreements with the U.S. Forest Service to implement a technical assistance program through the
remainder of 2007 and throughout 2008. In FY2008, Greece also received $443,000 in
International Military Education and Training (IMET) funds. In FY2009, it is receiving an
estimated $100,000 for IMET; and the Administration has requested $100,000 in IMET funds for
Greece for FY2010.
The United States has encouraged the rapprochement between Greece and Turkey, believing that
direct bilateral talks are the best route to normalized relations. Both Greece and Turkey
participate in the U.S.-initiated Southeast Europe Brigade (SEEBRIG), a rapid reaction force
consisting of contingents from seven regional countries.

16 Kira Adham, “A Consolation Hug from Obama,” Athens Enet, April 6, 2009, Open Source Center Document
EUP20090413143003.
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At the same time, there have been some tensions in U.S.-Greek relations. In November 2004,
Greece responded with a demarche when the United States formally recognized Macedonia as the
Republic of Macedonia. The State Department said that the decision was not directed against
Greece but intended to bolster Macedonia’s stability and ensure its path toward a multiethnic,
democratic state within its existing borders.17 President Bush added that the United States still
would embrace any name that emerges from negotiations between Athens and Skopje. The Bush
Administration supported the U.N.-assisted negotiations. Because the United States strongly
supports Macedonia’s integration in the Euro-Atlantic community, it regretted Greece’s lack of
agreement to a NATO invitation to Macedonia because the name issue was unresolved. Then
Assistant Secretary of State for European and Eurasian Affairs Daniel Fried stated that the
Administration would even have accepted an invitation to Macedonia as FYROM.18
Greece is one of only a few remaining EU member states not part of the U.S. Visa Waiver
Program (VWP), which allows short-term visitors to enter the United States without a visa.19
Greece had failed to meet the eligibility criteria by the time the program was frozen after 9/11.
After the Greek government began issuing the more secure passports in 2006, it made joining the
VWP a high priority. The Department of Homeland Security is conducting a process to include
Greece in the VWP. H.R. 2261, introduced on May 5, 2009, would designate Greece a program
country for the purpose of the VWP. On June 16, 2009, Assistant Secretary of State for European
and Eurasian Affairs Philip Gordon told the House Foreign Affairs Committee that he thought
that the process was near an end.
Greece values its role as an international energy hub in order to guarantee its own energy security
and to collect transit fees. Yet, the Bush Administration was concerned about planned Greek
energy links to Russia, i.e., the Burgos-Alexandroupolis oil pipeline from Russia via Bulgaria to
Greece and the South Stream natural gas pipeline from Russia, Bulgaria, and Greece to Italy and
Austria. This was because the Administration thought that the pipelines would increase Greek
dependence on Russia, which already supplies 80% of its natural gas, and undermine efforts to
ensure Europe’s energy security by diversifying sources from excess dependence on Russia. In
line with this view, the Bush Administration welcomed plans for the Turkey-Greece-Italy (TGI)
pipeline that will bypass Russia to supply Azerbaijani natural gas to Europe. The Obama
Administration’s Special Envoy for Eurasian Energy Richard Morningstar has said that the
Administration is neither “for” nor “against” South Stream.20
Although official U.S.-Greek relations are generally cordial, there is a strong strain of anti-
Americanism in Greece, stemming from U.S. support for the Greek military junta that ruled from
1967-1974 and perceptions of U.S. failure to prevent the Turkish invasion of/intervention in
Cyprus in 1974, among other issues. Unsupported allegations of U.S. interference in domestic
Greek political affairs surface regularly. Anti-American sentiment is manifest in periodic mass
demonstrations mobilized by Communists, anarchists, unions, antiwar activists, and anti-
globalization forces, whose influence is disproportionate to their numbers in society.

17 State Department spokesman Richard Boucher, quoted by Nicholas Wood, “U.S. Grants Macedonia Name
Recognition it Wants,” International Herald Tribune, November 5, 2004.
18 Dhimitris Y. Apokis, “We Have Never Recognized a Macedonian Ethnicity or Language,” O Kosmos tou Ependhiti,
April 12, 2008, Open Source Center Document EUP20080417141001.
19 For background, see CRS Report RL32221, Visa Waiver Program, by Alison Siskin.
20 “Summit Urges Greater Cooperation, Diversification for Europe’s Energy Security,” Xinhua News Agency, April 27,
2009.

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Greece Update

Author Contact Information

Carol Migdalovitz

Specialist in Middle Eastern Affairs
cmigdalovitz@crs.loc.gov, 7-2667




Congressional Research Service
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