EUROPA·PARLAMENTET Generalsekretanat Generaldtrektoratet for Forskning og Dokumentatwn EUROPAI.~CHES PARLAMENT Generalsekretariat Generaldtrekhon Wissenschaft und Dokumentatwn EYPOnAIKO KOINOBOYAIO reVlldJ rpn1111nt&ia revllcl\ t.uroWV<Jll 'Epruviilv IC(ll T&KilllPllOOll~ EUROPEAN PARLIAMENT Secretanat Dtrectorate General for Research and Documentation PARLEMENT EUROPEEN Secretariat General Direction Generale de Ia Recherche et de Ia Documentation PARLAMENTO EUROPEO EUROPEES PARLEMENT Secretariato Generale Direztom Generale della Rtcerca e della Documentaztone Secretanaat Generaal Dtrectoraat-generaal Onderzoek en Documentatie •, ; -. ./ UNDERS0GELSER O'G DOKUMENTATION SAMMLUNG WISSENSCHAFf UND DOKUMENTATION I:EIPA EPEYNA KAI TEKMHPUli:H RESEARCH AND DOCUMENTATION PAPERS DOSSSIERS DE RECHERCHE ET DOCUMENTATION DOSSIERS DI RICERCA E DOCUMENTAZIONE DOSSIERS ONDERZOEK EN DOCUMENTATIE 0konomisk Serie nr. Reihe Wirtschaftsfragen Nr. OiKOVOJUKi) anp«i ·Ap. Economic Series No serie economique no 4 Serie economics n. Economische serie or. Grrekenlands Tiltrredelse af det Europreiske Frellesskab Der Beltritt Gnechenlands zur Europaischen Gemeinschaft 'H evt~T] ti'j~ 'EUiLOO<; atiJv EupwnatldJ Kmv6'tl)ta Greece's accession to the European Community L'adhesion de Ia Grece a Ia Communaute L'adesione della Grecia alia Communita europea De toetredmg van Gnekenland tot de Europese Gemmeenschap Aout August 1982 Agosto AU'}'oooto<; augustus DIRECTORATE-GENERAL FOR RESEARCH AND DOCUMENTl\TIUt! NK/pr Luxembourg, 15 July 1982 Greece's accession to the EEC The attached jo1nt study was drawn up by Dr Nicolas Kyriazis, while Mr Domenico Morina wrote the section 'Cultural and soc1al development'. The Directorate-General for Research and Documentation carried out this study to provide a more detailed document for members of parliamentary committees who attend meetings in Greece and for Members of Parliament and other persons interested in this subject. We hope that this document, which is available in all the Community languages, will foster greater understanding of the major issues connected with Greece's access1on to the Communities. Francis Roy Director HELLAS NISSIA ANATOLlkOU ECEOU (> AGIOS EFSTRATIOS LE~ -..._r~IIIITILINI I ON I 0 PELAGOS KITHIRA tt q C 0 N T E N T S PART I. A. A Short History of Modern Greece............................... 4 B. Political Institut1ons......................................... 7 C. Cultural and Social Development................................ 10 PART II. Stocktaking of Accession 1. Agriculture.................................................. 18 2. The Greek Merchant Fleet .••.••.•••.•• ~······················· 26 3. Reg1onal Policy.............................................. 30 4. Social Policy................................................ 33 5. Accession to the ECSC........................................ 34 6. The free movement of workers................................. 35 7. Financial affairs............................................ 36 8. Free movement of capital..................................... 36 9. Entry of the drachma into the European Monetary System....... 40 PART Ill. Greek Industry l1. The theory of economic integration........................... 46 2. The structure of Greek industry.............................. 47 3. S1ze of undertakings 1n Greek industry....................... 51 ANNEX I Econom1es of scale, un1t cost and size of undertak1ng............. 55 ANNEX II Stat1stical Tables................................................ 58 Bibliography....................................................... 73 - 2 - PART I A. A SHORT HISTORY OF MODERN GREECE B. POLITICAL INSTITUTIONS C. CULTURAL AND SOCIAL DEVELOPMENT - 3 - ,.JART I Greece participated in the second World War on the side of the Allies after it was attacked by Italy on 28 October 1940. The Greek Army repulsed the Italian attack and in a victorious counter-attack pushed the Italians back into Albania, liberating Northern Epiro.s which was mainly inhabited by Greeks. In April 1941 the Germans attacke~ after conquering Yugoslavia and conquered Greece. They evacuated the country in 1944, after four years of occupation. In December 1944, the civil war started, which lasted till 1949, when the communist forces were defeated and con­ stitutional monarchy was introduced. There followed various governments, mostly of the right. In 1962/63 Geo~ge Papandreou, as leader of the Center Union, won the elections with a majority of 53% but soon he encountered resistance from King Cosntantine and the Queen Mother in his reforms. In 1965 he resigned followed by attempts to establish governments by dissidents from the Center Un~on Party, backed by the conservative E.R.E. Party. However, all attempts failed due to the fact that none of these governments united the ne­ cessary majority in Parliament. Finally, new elections were announced for April 1967 but a coup d'etat by the Colonels fore­ stalled them. In December 1967 King Constantin fled from Greece, after a fa~led coup against the junta. In 1973 there was a failed coup by the Greek Navy, one destroyer under its Commander Pappas (now Chief of Staff of the Greek Navy) escaping to Italy. The d1ctatorship abolished kingship and proclaimed the republic in June 1973, the dictator Papadopoulos naming himself President. In November 1973 a revolt of students who barricated themselves in the Polytechnic School of Athens was repressed with bloodshed. A coup d'etat threw - 4 - Papadopoulos out and Ioannides was the new strong man of the JUnta. The junta then tried to interfere in Cyprus staging a coup d'etat to overthrow the President of Cyprus, Archibishop Makarios. The Greek coup d'etat provoked the 1nvasion of Cyprus by Turkish landin~ forces who conquered about 40% of the island after sometimes fierce fighting. Other forces in th~ Greek Army, notably Generals Davos and Gratzios who commanded the most 1mportant forces in the Greek Army, stationed in Northern Greece, 1ntervened and over­ threw the dicta~orsh1p in July 1974 and charged Constantin Karamanl1s, then in exile in Paris·, to form a civil government with representatives of all polit1cal parties.· Actually the socialist (then not yet named PASOK) and the communist party were not represented in the government. Martial law was abolished and liberty of press and poli­ tical partie~ including the Communist party, which was banned from 1949, were reintroduced. Elections were proclaimed in November 1974, which gave an overwhelming majority to the party of Mr. Karamanlis, Nea Democratia. In December 1974 a refe­ rendum dec1ded on the fate of monarchy in Greece: 70% of the Greeks voted against a return to const1tutional monarchy and in June 1975 a new democratic cosntitution was voted, in which introduced parliamentary democracy with a President as Head of State. In 1975 Greece asked to accelerate her adhesion to the EEC and the negot1at1ons began the following year. The adhesion act was signed 1n Athens 1n May 1979 and Greece became a full Member from the 1 January 1981. In 1977 Karamanlis' party aga1n won the electHm but with a much lower major1ty, while PASOK became the ma1n oppo­ s1t1on party. In 1980 Karamanlis was elected by the Greek Parl1ament as President of the Republic and was succeeded in - 5 - the leadership of his party by Georges o~lli~, wQo_replaced_~im ~lso as Prime Minister. ,In the elections of October -•8_1 PASOK won and Mr. Papandreou fanned the first Greek socialist government. In ~e new parliament PASOK had 174 seats . (48.06% of votes}; Ne~ 0emocratia 113 se~ts (35.91% of votes} and the COmmunist Party 13 seats (10.89% at votes). The government of P~)K has to deal with the foilawing diffieult problems: revival ' ., • J lr • of the economy which was in a bad-state when P~>K came 'in ~r with a stagnation of. investment and high ~xt~~nai debt, fi~dlng ~f a solution to the Cyprus probiem and the Greek-Turkish differen~s ~d particiPation or withdrawal from NATO·and the status of American military bases in Greece. The Greek Government has sent a memorandum, dated 19 March, to the COmmission, concerning relations between Greece and the Comm~ity.ahd asking for certain improve-. ments in the condltions of Greek accession. On 10 June 1982 ,the Commission adopted ~· c~ication to the Council (prepared by Camlissioner Mr. Burke, to whom the matter had been passed), saying that on the 'whole the EEC could give a favourable reply to the questio~s posed by the Greek memorandum, while still remaining with1n the limits of the Treaty and without the necessity for mod1f1cations to the conditions of Greek accession. The Commission invites the Council to decide as follows: recognize, as the Greek government requests, the need to confront the particular problems which Greece has to face and to take them into account within the framework outl1ned by the Commission (see below po1nt 1). take note that the Commission will take those decisions which fall within its purview. invite the Commission to make appropriate proposals in the areas which fall within the Counc1l' s purview. agree to adopt fair decisions upon all the proposals already submitted by the Commission and on those which the Commission is called upon to submit within the penods laid down (see below point 2) • The Counc1l should, furthermore, 1nv1te the Greek government to remain in contact with the Commiss1on in def1ning its economic policy and particularly in connection with its flve year economic development plan, the teilliS of which should be canpatible with ~_:ity__ 9pj_~ctives