	Government and Politics

		Introduction and Situation before October 2009 Elections

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). After the 2007 election, ND lost one seat in parliament and its position declined due partly to additional corruption scandals, a crisis of law and order, and the economic situation. At the same time, the European Commission estimated that Greece's 2009 budget deficit would be 8% of gross domestic product (GDP), well above the 3% ceiling that the EU mandates for members, and the national debt would be 110% of GDP. GDP has contracted for three consecutive quarters in 2009. Foreign Policy

Greece is a member of the EU and NATO. Greece is a signatory of the Treaty; Turkey is not. 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 Bush Administration supported the U.N.-assisted negotiations.
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, the New Democracy (ND) party and the PanHellenic Socialist Movement (PASOK) have alternated leadership of the government. ND ruled from March 2004 until October 4, 2009, when PASOK won national elections and a clear majority of the seats in parliament. PASOK's victory has been attributed to anti-ND public sentiment caused by the economic recession, corruption scandals, and law-and-order issues. On taking power, PASOK inherited a severe financial crisis: economic growth has contracted for three consecutive quarters in 2009, and the budget deficit is projected to be 12.7.% of gross domestic product (GDP) and debt to be 125% of GDP in 2010. Therefore, the economy is the dominating issue on the government's agenda.
The Greek 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 [author name scrubbed].