Four Years After Olympics, Greek Dreams In Flames

Four years later, tens of thousands of them, angry at corruption and government economic policies, have taken to the streets.

As hosts of a successful Athens Olympics in 2004, Greeks took pride in putting on a show for the world and revelled in a mood of national elation and hope for the future.

Four years later, tens of thousands of them, angry at corruption and government economic policies, have taken to the streets in five days of riots that have blazed a trail of destruction through more than 10 cities. Scores of people have been injured and hundreds arrested.

The violent public reaction to the police shooting of a 15-year-old teenager on Saturday immediately spread across the country, shaking the conservative government.

For some, the violence was disproportionate to the tragic incident. But analysts say it triggered long-simmering anger and disappointment at a series of political and financial scandals as Greece begins to feel the effects of the world crisis.

"Joining the euro zone in 2001, and the 2004 Olympics, created high expectations among Greeks. There was euphoria that the country was going forward to a development and stability boom," said Yannis Stournaras, economics professor at Athens University.

The conservatives swept to power in March 2004, riding a wave of discontent at nearly 20 years of socialist scandals. They vowed to fight corruption and improve everyday life for Greeks, who have one of the EU's most notorious bureaucracies.

"As we see now, they had no plan. Key posts went to different hands, often without meritocracy. Instead of building on what they had, they started to deconstruct," Stournaras said.

There were EU-applauded economic accomplishments, such as cutting budget deficits and pushing privatisations. The economy continued to grow by about 4 percent annually, the fastest in the euro zone as Greeks borrowed to buy homes and goods.

But the balance of payments deficit grew, showing the weakness of Greek competitiveness. Ballooning public debt forced the government to borrow even more - now at rates almost 2 percentage points more than Germany pays - to service it.

CAUGHT BY SURPRISE

When the ripples of the economic crisis reached Greece, the government seemed surprised. It misfired with a series of tax measures in August to shore up the budget as other economies in Europe braced for collapse.

Before announcing any measures to support the poor, it presented a 28 billion euro ($36 billion) bailout plan for Greek banks, which have liquidity issues but no capital adequacy problems, and are not exposed to toxic assets.

"This government gives nothing to workers, but they are taking measures to support the banking system," said a 55-year old civil servant, who declined to be named, rallying in Athens along with thousands of strikers on Wednesday.

Numerous scandals have haunted Prime Minister Costas Karamanlis. Recently, two ministers were forced to resign over a suspect land swap deal between the state and a monastery, which cost taxpayers millions in land value.

"In recent years Greeks have been bombarded with news about the failures of their politicians, church leaders, judges, business leaders, journalists, almost everyone involved in public life," said Dimitris Keridis, politics professor at Macedonia University and the Fletcher School at Tufts.

The latest violence follows protests against pension reforms that cut many pensioners' rights and will force many workers to retire later, as well as privatisations and proposed changes in the education system.

"There has been a buildup of social discontent that has to do with the perceived lack of opportunities for young people. This, coupled with an economic crisis, has created the context for the huge social unrest," Kerides added.

Analyst say protests are fuelled by a lingering leftist ideology, lack of faith in the political system and an education that does not promote values.

Anarchist activity is not new -- such groups regularly firebomb businesses and luxury cars in Athens. But the teenager's shooting has brought out into the streets a bigger wave of radical leftists still inspired by memories of popular resistance to Greece's 1967-1974 military junta.

Many Greeks say it is fear for their children's future that drove them to protest.

"It's unbearable not having money, not having anything in my pocket," said Vicky Golizera, 41, a housewife protesting in Athens. "I am ashamed that my kids will not be able to find a job. The worst thing is we have no dreams for our children."