The Greek Economy, 1959–2009: From Association with the EEC to Accession and EMU

Abstract

The year 1958 was a particularly dismal juncture for the Greek economy. Agricultural production, then accounting for 50% of gross domestic product, was hit by the olive fruit fly. Consumer demand fell immediately and the impact of this was reflected in the 1958 elections, when the United Democratic Left (EDA) became the opposition party. Although the drachma had remained stable since 1953, the memories of previous setbacks were still vivid and underemployment or unemployment was a common phenomenon in Greek economic life. On top of this, it was announced that US assistance, which was somewhat of a relief for the country’s balance of payments, would gradually decrease and eventually be discontinued in the beginning of the 1960s.