Exactly ten years have passed since the most famous ultimatum in Europe's financial history. The then German Finance Minister Wolfgang Schäuble gave his Greek counterpart Yanis Varoufakis a final deadline - until 24 hours on February 28, 2015. And he threatened that if Athens did not fulfill the requirements for austerity by then, there would be no new financial aid for Greece, ARD recalls.
The Greek government headed by Prime Minister Alexis Tsipras opposed the austerity for a long time, even organizing a referendum, but Tsipras was forced to give in because he really had no other choice. Today, Greece's state debts are still high - they amount to 160 percent of GDP. But in 2020 they were 209 percent.
The budget has recently been in the red, Greece has managed to repay part of its debts early. Prime Minister Kyriakos Mitsotakis of the conservative New Democracy party points to this as his success: “We have left the crisis behind. Greece is growing much faster than the European average“.
Healthcare is in poor condition
However, many Greeks do not feel the benefits of the government's successes, ARD notes. The austerity policy has had an impact in many areas, for example in healthcare. Cardiologist Giorgos Vichas, who works at an Athens clinic, points out to the German public-law media that his main task is to manage the shortage – There is a shortage of specialists and equipment, and the shortage is felt in everything.
Vihas is the only cardiologist in a hospital that serves an area with a population of 60,000, and in the summer, when it is full of tourists, many more. The ultrasound machine that Vihas uses to examine his patients was purchased thanks to a generous donation from Hamburg.
The doctor points out that as a result of the deficits in medical care, life expectancy is decreasing, and the number of people who do not undergo preventive examinations has increased sharply. Those who cannot afford to take care of themselves privately face enormous problems due to the lack of funds in public health care.
The health consequences
Dr. Vihas's patient - pensioner Achilleas Iolas - has never recovered from the great crisis ten years ago. “I was laid off, which was a great loss. I had to start a new job and, with all the stress, I got heart problems.“
Like many Greeks, Iolas' memories of the crisis are traumatic. “I remember a family with four children who would sneak out at night to pick up the bag of food left by the garbage cans because they were ashamed not to be seen.“
Iolas was forced to sell his house and rent. His savings, which were intended for old age, were used up long ago. And his pension almost never lasts until the end of the month, “because we also have various financial obligations”, Iolas tells ARD. He also talks about the high electricity bills and the fact that there are also payments on his life insurance. “We are thinking about - whether to stop it. But what if something happens?“.
The incomes of workers and pensioners have decreased
Like Iolas, many Greeks do not feel the upturn in the Greek economy. Almost 60% of households in the country are unable to make ends meet. Salaries and pensions have decreased compared to the time before the financial crisis - even if inflation is not taken into account, the German public-law media notes.
In 2009, the average pension in the country was 1,080 euros, today 60 percent of pensioners receive less than a thousand euros. The average pension in Greece is 839 euros.
According to former Finance Minister Varoufakis, quoted by ARD, the austerity policy has ruined Greece, and there is no sign of an upturn. He also says that highly educated young people are leaving the country en masse, “while money is pouring into it for real estate speculation. Or it is invested in government bonds, i.e. in liabilities, not in production“.
There will be no return to the old model
Economist Angelos Tsakanikas from the Technical University of Athens is far more optimistic. He points out that the government has invested a lot in digitalization and has attracted global players and startups.
In front of ARD Tsakanikas points out that pharmaceutical companies, for example, are investing much more intensively in Greece. “Naturally, we do not want to return to the old welfare model, which was based solely on tourism and construction. It is natural that we now approach it more carefully, in other words – we have learned our lesson.“
Greece's credit rating is improving and the economic recovery is undeniable, even according to foreign experts. However, many Greeks are convinced that the crisis is not over at all.
Authors: Tilman Kleinjung ARD | Moritz Pompl ARD