Key figures from the Metapolitefsi period weigh in on its legacy
The main takes from the first day of the three-day conference
Has the Metapolitefsi period concluded? What lessons does it impart? Is its overall legacy positive? These are they key questions that guided the discussions on the inaugural day of the conference titled “50 Years of the Metapolitefsi.”
The three-day event, co-hosted at the National Gallery by Kathimerini newspaper, the National Bank of Greece Cultural Foundation (MIET), the Delphi Economic Forum, and the Hellenic Observatory of the London School of Economics and Political Science (LSE), aimed to prompt prominent figures from the post-dictatorship era to candidly address the inconvenient truths accompanying milestones such as the transition to democracy, accession to the core of Europe, and the decade-long debt crisis.
Of particular significance was Pulse RC’s survey on public attitudes towards the Metapolitefsi era. The survey illuminated varying perspectives, influenced by factors such as age and temporal proximity to pivotal policies and events. The consensus suggests that as time elapses from the historical events associated with the Metapolitefsi period, there emerges a more discerning and cautious evaluation of the achievements of Greek democracy.
One prevailing viewpoint expressed was that “the economy has been subservient to politics,” potentially explaining Greece’s enduringly low growth rates over the past five decades, averaging just above 1% of GDP. The issue of political cost featured prominently in panel discussions, with key figures of the Metapolitefsi era conceding that certain measures couldn’t be implemented due to political constraints.
Throughout the conference, Kathimerini’s journalists recorded notable displays of candor and introspection. Noteworthy among them were the revelations from three former “czars” of the Greek economy, who publicly admitted to regrettable decisions: Euclid Tsakalotos expressed remorse for imposing an advance tax payment during a period of economic distress, George Papaconstantinou similarly regretted introducing a solidarity levy during tumultuous times, and Georgios Alogoskoufis lamented his statement asserting that the Greek economy was “shielded” despite his intention to appease markets.
The rare public appearance of former prime minister Loucas Papademos garnered significant attention, as he elucidated his continued defense of Greece’s eurozone membership and the necessity for restructuring Greek debt during the implementation of private sector involvement (PSI). Central to his critique of the chronic shortcomings of the Greek economy was the assessment that macroeconomic policies aimed at demand stimulation were not paralleled by reforms to bolster supply. Nevertheless, he maintained optimism about Greece’s future, linking it to the trajectory of Europe as a whole.
Major decisions, trials, and contemporary hurdles
In a packed auditorium, Alexis Papachelas, executive director of Kathimerini, took the stage following Syrago Tsiara, director of the National Gallery, to address the conference and shed light on the inspiration behind the event. “The idea originated two years ago. It’s an initiative that can teach us something about the future – to delve into the essence of the Metapolitefsi era and extract valuable lessons from it. We sought individuals who have shaped the destiny of our nation to join us. And we aimed for pluralism of opinion,” he said, dedicating the proceedings to the late businessman Costas Apostolidis.
The audience then greeted Gikas Hardouvelis, president of the National Bank of Greece Cultural Foundation, and Symeon Tsomokos, founder and president of the Delphi Economic Forum. Hardouvelis urged conference speakers to “speak candidly” about the shortcomings of the Metapolitefsi era, highlighting a period of sluggish economic growth, averaging at 1.3% of GDP. He emphasized the imperative need for bipartisan consensus on critical issues such as demographic decline and education. Tsomokos, on the other hand, underscored the benefits accrued during the Metapolitefsi era, framing it as the culmination of the founding of the Greek Republic.
The transition
In the subsequent discussion between Papachelas and Kostas Kostis, professor of economics and social history at the National and Kapodistrian University of Athens and director of the National Bank’s Cultural Foundation, Kostis emphasized that democracy in 1974 emerged from a profound crisis. “In Greece, we tend to overlook the exact events. We ignore [the history of] Cyprus and we also ignore that what happened in Cyrus was because of Greece,” he said. Papachelas, in turn, highlighted the “excessive sense of entitlement” and a “disconnect from reality” as defining features of the Metapolitefsi period. However, he acknowledged that the transition to democracy was largely smooth and devoid of major upheavals, a stability which Kostis attributed to Konstantinos Karamanlis. “He laid the groundwork for our democratic system,” remarked Kostis.
The economy
“In the 50 years of the Metapolitefsi, Greece experienced very low growth rates. It never achieved a budget surplus, and when we did manage to attain primary surpluses, it was not under favorable conditions. Moreover, it consistently maintained a negative current account balance, indicative of its international competitiveness,” stated Kathimerini’s Managing Editor Vassilis Ziras, who moderated a discussion featuring former finance ministers Alogoskoufis, Papaconstantinou, Tsakalotos, IOBE General Director Nikos Vettas, EF Consulting CEO Miranta Xafa, and former OTE Chairman Panagis Vourloumis.
Alogoskoufis conceded that during the Metapolitefsi period, certain measures couldn’t be implemented due to political constraints. “If a government attempted to cut wages during the period of exuberance, as the troika did, it would be ousted in an instant,” he remarked, adding, “Finance ministers don’t govern; prime ministers do. And sometimes, even they can’t exert control.”
“We’ve learned to calculate and be cautious, but true learning hasn’t occurred. The narrative surrounding the crisis remains problematic. Other countries have established truth commissions post-crisis. The major risk lies in transforming the political culture and making timely decisions,” noted Papaconstantinou during the debate.
Tsakalotos responded to inquiries about the cost estimates of SYRIZA’s initial negotiations with Greece’s foreign lenders, expressing disappointment: “That was one of the things that saddened me most. It is rediculous and unrealistic to speak of a cost of 86 billion.” He attributed political motives to European officials, stating, “Europe wanted the defeat of the Left, there was little we could do.”
Vourloumis highlighted the dysfunction of Greek administration and institutions, including the judiciary. “The Greek bailout programs lasted eight years, far longer than any other country’s. In the end austerity was implemented and to a less extent reforms,” Vettas remarked. Referring to the case of former ELSTAT chief Andreas Georgiou, Xafa suggested he was made a scapegoat by those avoiding accountability for the crisis. “At the same time he united the New Democracy and SYRIZA parties in a common narrative based on the belief that the bailouts were the cause of the crisis.”
According to Papademos, Greece’s economic policies haven’t aligned with the constraints imposed by the EU’s single monetary policy, which aims for price stability. Nevertheless, he acknowledged progress in recent years in implementing necessary reforms for the country’s future.
Prokopis Pavlopoulos
Ex-president Prokopis Pavlopoulos, a close associate of Papademos at the time, recounted the significant decisions made by Konstantinos Karamanlis upon returning to Athens from Paris: the establishment of the so-called “ecumenical government,” prompt elections, and the commencement of accession negotiations with the EU. Speaking with Kathimerini journalist Notis Papadopoulos, Pavlopoulos delved into his tenure as president, recalling his conversation with ex-prime minister Alexis Tsipras before assuming the head of state role: “When I asked the then prime minister, ‘Why me?’ he replied, ‘To keep the country in the EU’.”
Panagiotis Pikrammenos
Former prime minister and deputy prime minister Panagiotis Pikrammenos discussed modern challenges to democracy, including the proliferation of fake news, climate change, and demographic shifts. Speaking with the Editor-in-Chief of Kathimerini English Edition Tom Ellis, Pikrammenos shared insights from his private conversation with former German Chancellor Merkel, recalling, “I was bombarded… it was disparaging.” He reminded her that he was not involved in the Greek political system, urging, “Treat me as you would a high-ranking German judge.”
The judiciary
A panel, moderated by Skai journalist Pavlos Tsimas, discussed the operation of the judiciary and institutions, featuring Justice Minister George Floridis, former minister of interior, public administration, and decentralization Kostas Skandalidis, and former House speaker Nikos Voutsis. Skandalidis reflected, “The Metapolitefsi period concluded in 2004, following Greece’s entry into the EMU and the euro, and the hosting of the Olympic Games: we transitioned from a military dictatorship to a European nation.” Floridis emphasized, “The last 50 years represent the best Greece has experienced in the last 200 years.”
Voutsis countered, “It is too simplistic to engage in discussions that cast doubt on democracy in Greece, based on isolated events and certain omissions.” He highlighted the parliament’s resilience, even amidst the unprecedented challenges of the pandemic, citing the entry of the neo-Nazi Golden Dawn party as the most significant challenge.
Nikiforos Diamantouros, professor emeritus of the National Academy of Sciences, remarked, “The transition to democracy in 1974 was a significant achievement. However, liberal democracy demands active citizenry due to its complexity.”
Kalliopi Spanou, professor at the University of Athens, observed, “Politicians often seem to falter when they are at the forefront or in positions of policymaking authority.”
