The Post-PASOK Period, 1989-1991
This chapter analyzes the most recent development of the Greek economy. The years 1989 to 1991 may be referred to as the "post-PASOK period." The relatively conservative New Democracy Party (ND) placed first in the June 1989 general election. It did not, however, hold the majority of seats in Parliament. PASOK continued to be a force in Parliament by placing a close second in the election. As a result of this and of the fact that the left-wing coalition party, Alliance of the Left and Progress, held ten percent of the seats in Parliament, the leader of ND, Constantine Mitsotakis, was unable to form a government acceptable to the other parties. An interim government was formed under the unusual coalition between the ND Party and the Alliance of the Left and Progress.
What followed were two general elections within seven months. The result of the first one of the two was primarily identical to that of the June 1989 election. That is, ND continued to place first but could not gain the majority of seats in Parliament. Consequently, another interim coalition government was established until the general election in April 1990, when ND captured the majority of seats in Parliament. Mitsotakis became prime minister and established a government under ND.
A conclusion on economic development in Greece