Greece country brief

Bilateral relations

Greece and Australia enjoy a close and constructive relationship based on strong community ties. Large numbers of Greeks migrated to Australia during the 1950s and 1960s; the 2006 Census records 109,989 Greece-born migrants, and 365,147 people of Greek ancestry living in Australia (based on country of birth of parents). Some estimates suggest the Greek community in Australia could be as large as 600,000. The Greek population is concentrated in Melbourne (41 per cent) and Sydney (30 per cent). Melbourne, Sister City to Thessaloniki, has been described as the third largest ‘Greek city’ in the world and is an important overseas centre of Hellenism.

The strong community links between Greece and Australia are a major focus of Australian Government business in Greece, and so, therefore, is the provision of consular services. Frequent cultural exchanges take place, often between specific communities in both countries. Several Aegean and Ionian Island communities migrated in large numbers to Australia after World War II (for example, more Kastellorizians and Kytherians live in Australia than on their home islands). Nowadays their descendants are reinvigorating the bilateral relationship through frequent travel back to Greece for holidays, study and work. An enduring historical link has resulted from the involvement of Australian troops in the defence of Greece during World War II. Australian soldiers fought alongside troops from Greece, New Zealand and Britain during the Battle of Crete (May 1941) to defend the island against German invasion. Many were killed and several thousand taken prisoner in a battle that is still commemorated annually.

In 2008-09, two-way trade including services between Greece and Australia was worth about A$229 million. Australian merchandise exports to Greece totalled A$68 million while goods imported from Greece were worth A$161 million. Australia's key exports to Greece vary considerably from year to year. Medicaments, specialised machinery and parts, starches, inulin and wheat gluten, and hides and skins comprised the majority of Australian exports to Greece in 2008-09. Australia's main imports from Greece include vegetables, aluminium, cheese and curd products, and medicaments.

Australia and Greece signed a bilateral social security agreement on 23 May 2007 to provide improved social security protection to people who have lived and/or worked in both Australia and Greece. The social security agreement also exempts Australian employers from the need to provide Greece social security support for Australian employees sent temporarily to work in Greece, provided the employee remains covered in Australia, by compulsory superannuation arrangements. Further information is available on the Australian Taxation Office website.

Educational links between Australia and Greece are still emerging. Modern Greek is taught in many Australian schools and Modern and Classical Greek Studies are available in some Australian universities, but there is little study of Australia and its region undertaken in Greece.

• List of bilateral treaties with Greece and their full texts.

Recent Visits

• June 2008 Governor of Western Australia and Mrs Michael visited Greece
• May 2007: former Greek Prime Minister, H.E. Mr Kostas Karamanlis, former Foreign Minister H.E. Ms Dora Bakoyannis and a delegation of Greek officials and media visited Australia
• May 2007: Premier of South Australia, the Hon Mike Rann MP visited Greece
• June 2006: former Minister for Education, Science and Training, the Hon Julie Bishop MP
• October 2005: The Governor of New South Wales, H.E. Professor Marie Bashir
• April 2005: former Premier of Western Australia, the Hon Geoff Gallop MP
• April 2005: former Prime Minister, the Hon John Howard MP, Mrs Howard and a delegation of officials and Australian media visited Athens. Former Prime Minister Howard also visited in July, 2002.
  

Political overview

The current President, Mr Karolos Papoulias, was sworn in as Greece's sixth President on 12 March 2005, and is serving a five-year term. The President has no powers to initiate legislation and is required to appoint as Prime Minister the leader of the political party with an absolute majority of seats in Parliament. The President must be elected by two-thirds majority of MPs or, on the third ballot, by a three-fifths majority. In the event this does not happen, parliament is dissolved and an election is held, whereby the President is elected by a simple majority of members in the new house.

The unicameral parliament consists of 300 members, elected under a system of reinforced proportional representation. Each Parliament is elected for a maximum of four years. Greece elected a new government on 4 October 2009, with the centre-left opposition party, Panhellenic Socialist Movement (PASOK), winning a strong majority over the conservative New Democracy government and claiming 160 seats of the 300 seats in Parliament. The new Government is led by George A. Papandreou. Greece is a member of the European Union and last held the Presidency from January to July 2003. In the June 2009European Parliament elections, PASOK won 36.65 per cent of the Greek vote (or 8 out of the 24 Greek seats). Greek voter participation (52.61 per cent) in the European Parliament elections was slightly higher than the European average of 43 per cent.

The Asia-Pacific region has not historically figured prominently in Greece's foreign policy agenda, which focuses on the European Union, the Balkans and its near neighbours (in particular Cyprus and Turkey). In 2009 Greece held the chairmanship of the Organisation for Security and Co-operation in Europe (OSCE).

Greece has a long-established political and cultural relationship with the Republic of Cyprus. Resolution of the Cyprus issue remains a key foreign policy priority of the Greek Government. While the relationship between Greece and Turkey has historically experienced difficulties, in the past few years signs of improving bilateral cooperation have emerged.

Greece is also keen to establish closer relations with its neighbours in the Balkans. The Government views the Balkans as being of high strategic and economic importance and believes their closer association with the European Union would ensure peace and stability in the region. Balkan states are an important destination for Greek investment. Obstacles remain, however, particularly regarding the protracted dispute over the “name issue” with the Former Yugoslav Republic of Macedonia (FYROM)

Economic overview

Greece has a population of 11.2 million, GDP of US$338.3 billion and an estimated GDP per capita of US$30,305 (2009 estimates). Principal export destinations are Italy, Germany and Bulgaria, while the main import sources are Germany, Italy and Russia (see Greece - Fact Sheet). The main engine of the Greek economy is the services sector (75.7 per cent of GDP in 2008) although industry accounts for 20.6 per cent of GDP. Greece has little heavy industry, with the once substantial shipbuilding industry in decline over recent years. Greece still has one of the largest registered merchant marine fleets in the world, constituting around 20 per cent of the world fleet in terms of capacity in deadweight tonnage. Agriculture is of major socio-economic importance to Greece (3.7 per cent of GDP in 2008), with 12.4 per cent of the population employed in the sector. The main agricultural products are wheat, corn, barley, sugar beets, olives, tomatoes, wine tobacco, potatoes, beef and dairy products.

Greece has been badly affected by the global economic crisis, with the country in recession. The budget deficit is likely to reach 12 per cent of GDP for 2009. Public debt stands at around 113 per cent of GDP and state revenues have dropped 0.7 per cent. Analysts warn that unless robust structural reforms and policy adjustments are implemented, Greece will continue to face a grim fiscal outlook. 

Last updated 21 December 2009