Greece country profile

The historical and cultural heritage of Greece continues to resonate throughout the modern Western world - in its literature, art, philosophy and politics.
Situated in the far south of the Balkan peninsula, Greece combines the towering mountains of the mainland with over 1400 islands, the largest of which is Crete.

Overview

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Post-World War II Greece has seen rapid economic and social change. Major contributors to the economy are tourism and shipping.

The financial crisis of the late 2000s hit Greece particularly hard, as the legacy of high public spending and widespread tax evasion combined with the credit crunch and the resulting recession to leave the country with a crippling debt burden.
In the spring of 2010, amid fears of an imminent default on debt payments, Greece's fellow eurozone countries agreed an unprecedented $145bn package to rescue its teetering economy. The main condition attached to the loan - drastic cuts in public spending and tax hikes - prompted fears of protracted social unrest and instability.

Parthenon, Athens: Built at the apex of the city-state's power

Greece has long been at odds with its close neighbour, Turkey, over territorial disputes in the Aegean and the divided island of Cyprus.
Relations warmed after both countries suffered earthquakes in 1999 and offered each other practical help.
Although the disputes remain unresolved, the Greek government gives strong backing to Turkey's EU bid. It sees dividends to be gained from the increased regional stability that it believes membership would bring.
Greece has been in dispute since the early 1990s with the Former Yugoslav Republic of Macedonia. Greece contends that the use of the name Macedonia by the neighbouring country implies a territorial claim over Greece's own region of the same name. The UN is involved in continuing mediation efforts.
Athens stepped into the global spotlight when the Olympic Games returned home in 2004. The games were hailed as a success, despite widely publicised fears that the infrastructure would not be complete in time.