The economic crisis and the threat of default have had significant repercussions on the Greek political system. The handling of the crisis by the new PASOK government has led to a new political and has added new problems to the party system. The purpose of this paper is twofold: First, to trace the course and the causes that led to the present day crisis by pinpointing the major socioeconomic and political developments that paved the way to the crisis. Second, it seeks to explore the political management or mismanagement of the crisis, to identify the strategies of the main political actors, and to assess the problems facing the Greek political system. It is argued that apart from the obvious economic crisis, Greece is undergoing a protracted and serious political crisis
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