Medias Contribution to the Changing Political Landscape and
Rise of Ideological Extremism in Greece Yiannis Mallios
Slide 3
Political System of Greece Parliamentary Republic Prime
Minister Head of Government President Head of State Ministerial
Council Legislative parliament (300 MPs) Hellenic Parliament ( ) in
the Old Royal Palace in Syntagma Square
Slide 4
Electoral Process for National Elections 56 Electoral Districts
Mixed system Multi-member districts awarded proportionally (250
seats). Winning party awarded bonus (50 seats) Creates Majoritarian
structure Map of Greeces Administrative Districts
Slide 5
Late 20 th and Early 21 st Century Political History: Two Party
Dominance New Democracy, N.D. ( ) Centre-right, conservative
Established by Konstantinos Karamanlis in 1974 Formed first
democratic government after the collapse of the military junta
Economic liberalization Lower taxes Privatization of state assets
Pro-Europe
Slide 6
Late 20 th and Early 21 st Century Political History: Two Party
Dominance PASOK, Panhellenic Socialist Movement () Centre-left,
Social democratic Created in 1974 by Andreas Papandreou
Transitioned to moderate-left since its inception as a Marxist
modeled radical party Social populism Public welfare State market
interventionism/Social corporatism Income parity Pro-Europe
Parties in Government since 1974 The chart depicts the parties
that have formed a single party simple majority government or
participated in a coalition government since 1974.
Slide 9
Era of Recession and Austerity in Greece Greece, and the Euro
Area as a whole, begin experiencing an economic recession in 2008.
Primary reasons for economic depression in Greece: Careless
government spending and borrowing, tax evasion, high debt to GDP
ratio, corruption, falsified financial figures, etc. Principal
consequences of the debt crisis: Highest unemployment in Europe
(second among youth), reduction in social welfare programs,
decrease in national personal income, increased poverty, brain
drain, etc.
Slide 10
The Greek Recession in Numbers
Slide 11
The Escalation of Grexit fears During the onset of the
recession, global and national fear of a Greek default and Euro
exit remained low. Although a report issued by Greeces government
in October 2009 significantly altered public deficit estimates for
09 & 10, the risk premium for Greek debt remained constant for
several weeks when compared to German bonds, contrary to economic
logic. After interest rates on Greek bonds increased in November,
although later than expected, no new significant negative data was
released on Greeces debt repayment capabilities. However, in the
following five months, the top three credit rating agencies
downgraded Greeces score more than once.
Slide 12
The Role of Media Bias in Fueling the Crisis A study published
by the political-economic analyst Sonja Juko provides empirical
evidence that suggests a correlation between media coverage and the
deterioration of the Greek crisis. Juko argues that financial media
organizations, being driven by commercial interests, have strong
incentives to give market experts a platform to make their views
known to financial market participants. Consequently, financial
analysts are likely to make assertions that support their companys
investment portfolio and interests (i.e. media bias). As a result,
financial institutions leverage the news to influence investors
interpretation of the bond market. For example, after the CEO of
Deutsche Bank declared in an interview on May 13, 2010, that Greece
would likely not repay its debt commitments, interests on 10 yr
Greek bonds increased by 40 points the next day.
Slide 13
The Influence of Media Coverage on the Greek Bond Market
Slide 14
Media Inspired Political Backlash In addition to generating
financial concern over the Greek economic crisis, the media also
produced social-political implications both domestically and
abroad. Globally, Greeks were labelled with unfair stereotypes and
the government of Greece was forced to accept harsh austerity
measures. http://thedailyshow.cc.com/videos/raaix1/grecian-burn
http://thedailyshow.cc.com/videos/raaix1/grecian-burn Internally,
traditional parties were blamed for the crisis and the high levels
of bureaucratic corruption. To a greater extent, many Greek
citizens criticized the coalition governments of N.D. and PASOK for
agreeing to austerity policies set by the Troika (IMF, ECB, EU).
Although not in the interests of most international creditors, the
Greek electorate was motivated to explore political alternatives.
Radical parties especially benefited from this new political
climate. Fostered by extremism movements throughout Europe (e.g.
Podemos)
Slide 15
Rise of the Extreme Left Syriza, Coalition of the Radical Left
() Far left, anti-establishment Founded in 2004 following the unity
of 13 left- wing/radical-left parties Democratic Socialism/Populist
Nationalization Anti-austerity Anti-capitalism Welfare state/State
job programs Higher tax for wealthy
Slide 16
Rise of the Extreme Right Golden Dawn ( ) Far-right, fascist,
neo-Nazi Officially established in 1985, recognized in 1993
National Socialist/Ultra-nationalism Anti-immigration
Anti-austerity Eurosceptic Aggressive foreign policy
Nationalization
Slide 17
2015 Greece National Election Results
Slide 18
Syriza forms Coalition Government Tired of tough austerity
measures and a sharp decrease in their standard of living, the
Greek people elect Syriza with 36.3% of the vote. 149 seats won;
forms coalition with right-wing, conservative populist party
Independent Greeks. Ideologically different socially and fiscally,
but both are anti-austerity. Reflects voter sentiment against
Troika. Ignites fear of Grexit as well as other Eurosceptic parties
in Europe (e.i. Podemos, UKIP, etc.)
Slide 19
Current Situation Despite ambitious promises, the newly elected
Prime Minister Alexis Tsipras and his appointed Finance Minister
Yanis Varoufakis have failed to renegotiate the bailout deal as
wanted. Although Syriza claims full support for EU membership, the
party is rumored to be preparing to nationalize banks and print a
domestic currency. Discussions with Euro Area partners and IMF are
ongoing: http://www.theguardian.com/business/live/2015/apr/2
7/greek-finance-minister-debt-talks-eurozone-live
http://www.theguardian.com/business/live/2015/apr/2
7/greek-finance-minister-debt-talks-eurozone-live
Slide 20
End of Moderation? Result of Media Bias? Prime Minister Alexis
Tsipras supporting Podemos at European Left rally