INTERNATIONAL POLICY ANALYSIS The Greek Economy and the Potential for Green Development GEORGE PAGOULATOS March 2010 n The socialist PASOK government came to power with an ambitious green develop­ment programme. n The PASOK government has officially endorsed the»green economy« agenda as the principal strategy for enhancing economic growth and employment. n The»green economy« strategy offers a much-needed new growth model for Greece and serves the objective of catching up with EU sustainability targets. n Greece’s fiscal squeeze and recession in 2010 indicate that both the budgetary aspect and the job-saving dimension of green development policies will tend to dominate. n The scarcity of financial resources could end up impeding the speed and effective ­ness of the transition to a»green economy«.