On the Edge of Europe:

Greek politics is typically European, complete with several competing political parties, a Parliament, a Prime Minister, and a President. The current Prime Minister, Costas Karamanlis, leader of the conservative New Democracy party, pursues an ambitious agenda featuring sweeping reforms, including legislation targeting pensions and the higher education system, while carefully managing a paper-thin majority in Parliament. However, the leading opposition party, the center-left Panhellenic Socialist Movement, popularly referred to as Pasok, is not likely to form a working coalition with the rather extremist minor parties which hold a modest amount of seats in the legislature. The choices would be the Communist Party, the Coalition of the Radical Left, or the ultra-right wing Popular Orthodox Rally. Pasok leader George Papandreou has enough problems preserving party discipline and may even face a fight to keep his own current post.

Although bribery and corruption scandals have attracted media attention recently and damaged Karamanlis' popularity, the current government is expected to remain in place until the next regularly scheduled national election set for the autumn of 2011. In the interim a snap election would not be called lightly, especially as neither of the two main parties could count on improving current standings. The slowing economy, affected by the global credit crisis and looming inflationary pressures, is creating enough headaches for the politicians at the moment. There's the budget deficit to deal with, a deficit that doesn't comply with European Union guidelines, the scandals of the moment, the proposed reforms, and, additionally, what to do about the bankrupt national airline. Interestingly, Qatar has expressed interest in acquiring troubled Olympic Airlines.

As for international affairs, relations with Turkey and Macedonia as well as with the European Union and NATO are the top concerns. In January Karamanlis visited Ankara in his official capacity as Prime Minister, the first time a Greek leader has participated in such high-level diplomacy with long-time rival Turkey in five decades. Despite lingering territorial disputes and differences over the reunification of Cyprus, Greek-Turkish relations have been noticeably amicable in recent years. For one thing, Turkey's interest in achieving membership in the European Union is strongly endorsed by Greece.

Relations with a much smaller neighbor, Macedonia, are decidedly less friendly, as Greece still insists that the former Yugoslavian entity must change its official, internationally recognized name. Because a Greek province of the same name borders the newer autonomous country, apparently the Greeks feel problems, including major ones involving territorial rights, will inevitably crop up, fester, or even lead to military engagement. Accordingly, Greece has so far blocked Macedonia's bid to join NATO and is expected to place barriers on the path to EU membership for the small landlocked nation.

For internal affairs, an emerging national political issue concerns illegal immigration. In the last few years the Greek islands have become popular destinations for asylum seekers and economic refugees from Asia and Africa. Anxiety over the influx of foreigners as well as the possibly related increase in violent crime accounts for an uptick in support for the nationalist party Popular Orthodox Rally. Another recent issue, regarding pension entitlements and early retirement options, was cause for a nationwide, union-backed, one-day strike in October which upset transportation and other service industries from Athens to the hinterlands.

So, in summary, Prime Minister Karamanlis, educated for the law and known for a relaxed approach to crisis and calm, will likely be tested as he and his New Democracy party negotiate acceptable solutions or stopgap measures for these selected issues and others, especially the problems associated with a probable worldwide recession.

Sabrina Tavernise and Anthee Carassava, "In a 49-Year First, Greek Leader Visits Turkey", New York Times

"Schools for scandal", The Economist

"Greece: No EU, Nato for Macedonia until deal", Sofia Echo/BalkanInsight.com

"Greek flight unions cool to Qatar interest", International Herald Tribune/AP

Caroline Brothers, "Unwilling New Frontier for Migrants: 3 Greek Isles", New York Times

"Strike-hit Greece at standstill", BBC News Online