Income support policies and labour market reforms under austerity in Greece
This chapter reviews the changes in labour market policies under conditions of harsh austerity and mass unemployment in Greece in 2010-2015. Three policy areas are covered: income support to the unemployed, active labour market policies, and employment protection legislation. We find that labour market policies in Greece have failed to rise to the challenge of harsh austerity and mass unemployment. A legacy of backwardness, neglect, and general lack of sophistication proved difficult if not impossible to overturn under the emergency conditions prevailing since 2010. Moreover, as regards the less controversial aspects of the structural reforms demanded by the country’s creditors under the bailout agreements (for instance, supporting job creation, upgrading the Public Employment Service, and improving the absorption, as well as the effectiveness of EU funding), the domestic actors’ preferred approach of passively adjusting to European funding opportunities, rather than genuinely puzzling for solutions, left no room for a more constructive engagement. The adverse effects of the resulting handicap are there for all to see.