Andreas Papandreou - Economic Policies

Economic Policies

The expenditure programme of the Papandreou government during 1981–1990 has been described as excessive by its conservative critics. The excessive expenditures were not accompanied by corresponding revenue increases and this led to increases in budget deficits and the public debt. Many economic indicators worsened during 1981–1990 and the economic policies of his government were condemned as a failure by his critics. On the other hand, according to his supporters they were very successful, drastically increasing the purchasing power of the vast majority of Greeks, with personal incomes growing by 26% in real terms during the course of the 1980s. Papandreou's increased spending in his early years in power (1981–1985) was necessary in order to heal the deep wounds of the Greek society, a society that was still deeply divided by the brutal memories of the Civil War and the right-wing repression that followed; furthermore, the postwar government philosophy of the Greek conservatives simply saw the state as a tool of repression, with very little money spent on health and education, and little interest on the well-being of society.