Kostas Karamanlis, a nephew of former Greek President
Konstantinos Karamanlis, was born in
Athens and studied at
University of Athens Law School and at the private
Deree College, continuing with postgraduate studies in the
Fletcher School of Law and Diplomacy at
Tufts University (
Boston) in the United States, where he gained a master's degree and a doctorate in political sciences, international relations and diplomatic history. Karamanlis served in New Democracy's organisational and ideological sectors from 1974 to 1979 and from 1984 to 1989. He is the author of a book,
Eleftherios Venizelos and Foreign Relations of Greece, 1928–32, on the Greek politician
Eleftherios Venizelos. He has also edited and prefaced various historical publications. Karamanlis was elected a New Democracy deputy for
Thessaloniki in 1989, but in 2004 he was elected for
Larissa. He was elected party leader in 1997 following New Democracy's defeat in the 1996 election. He defeated the ruling
Panhellenic Socialist Movement (PASOK) at the
2004 elections. He served as one of the Vice Presidents of the
European People's Party (EPP) between 1999 and 2006. Karamanlis was the first Greek Prime Minister to be born after
World War II. He married
Natasa Pazaïti in 1998 having two children born on 13 June 2003.
Prime minister Aided by the unpopularity of the incumbent PASOK government led by
Costas Simitis (a party that had been in power between 1981 and 1989 and from 1993 to 2004) ND defeated the Socialists'
George Andreas Papandreou in 2004. Karamanlis stated that the priorities of his government were
education,
economic policy,
agricultural policy, lowering the high level of
unemployment (standing at 11.2%) and a more
transparent and effective state administration. Economic policy centered on
tax cuts, investment incentives,
privatization, and
market deregulation. While early problems included a large
public debt (about 112% of GDP) and a budget deficit (5.3% of the GDP) in excess of
Eurozone stability rules, Karamanlis's government halved the budget deficit to 2.6% by 2006. Another key issue was the
2004 Summer Olympics scheduled to be held in Athens in the first year of his government: several key buildings were unfinished at the time of the election, the security budget had increased to €970 million and authorities announced that a roof would no longer be constructed over the main swimming venue. The main
Olympic Stadium, the designated facility for the opening and closing ceremonies, was completed only two months before the games opened, with the sliding over of a futuristic glass roof designed by Spanish architect Santiago Calatrava. Other facilities, such as the
streetcar line linking the city and the airport were largely unfinished just two months before the games. The subsequent pace of preparation, however, made the rush to finish the Athens venues one of the tightest in Olympics history and everything was finished just in time for the Opening Ceremony. At the end, the Games were held exactly as planned and were globally hailed as a spectacular success. Nonetheless and as a result of the delays, large
cost overruns resulted in a deficit in the national accounts above EU stipulations. The ND government and the previous government of
Costas Simitis criticized each other for the messy preparations. PASOK criticized the New Democracy government for using the Olympics as a pretext to renege on promises. Under the weight of the huge costs (estimated at €7bn), the deficit shot up to 5.3%. Karamanlis declared that "
Social policy was done with borrowed cash,
military spending did not show up on the budget,
debts were created in secret".
Financial audit of 2004 in 2009 in 2004 In March 2004, while PASOK was still in government, Eurostat refused to validate the fiscal data transmitted by the Greek government and asked for a revision, as it had done previously twice in 2002, resulting in a revision which changed the government balance from a surplus to a deficit. A worse blow came in May 2004, when the European Commission harshly accused Greece of "imprudent" and "sloppy" fiscal policies, pointing out that since Greek economic growth had been an annual 4% in 2000–2003, a declining fiscal position could only be the result of government mismanagement, including concerns by the EU regarding the 103%
public debt to GDP ratio which Karamanlis had inherited from the previous PASOK regime. With this report, the Commission effectively called into question the quality of Greek economic data, as Eurostat had done in March. The New Democracy government under Karamanlis, elected on April of that year, decided to conduct a Financial Audit of the Greek economy, before sending
revised data to Eurostat. The audit concluded that the PASOK administration and prime minister Costas Simitis had falsified Greece's macroeconomic statistics, on the basis of which the European institutions accepted Greece to join the Eurozone. PASOK contested the accusations and claimed that 2006 Eurostat changes to the system of defense expenditure calculation legitimized the practices of the Costas Simitis government. New Democracy responded that the defense expenditures covered by those changes constituted only a small part of much more substantial expenditures that were fraudulently concealed by the previous PASOK government. In
social policy, the
retirement age was raised from 58 to 60 for those with 35 years of insurance, while early retirement went up from 55 to 60 for those who entered the labor market after 1993.
Supplementary pensions were also cut. In addition, mothers with under-aged children could retire at 55 instead of 50, while
paid maternity leave was extended to 6 months in the private sector. Rising
unemployment and the threat of
inflation undermined Karamanlis's promises to kick-start the economy and sparked
strikes, especially one in 2006 by rubbish collectors, causing severe disruption in the economy – particularly the one in July 2005 at the height of the tourist season. In early 2006, it was revealed that the cellular phone of Kostas Karamanlis, as well as those of several other members of the government and officials of the armed forces, had been
wiretapped for several months during and after the 2004 Athens Olympics. The investigation into this matter by the Greek organization for communications privacy was closed with the argument that if this investigation would carry on, the information revealed would be dangerous for the
national security of Greece. The government has undertaken a €210 million program to bolster broadband internet connectivity in provincial Greece, which was approved by the European Commission in 2006 with the commendation that it constituted "the most ambitious broadband development programme that any EU member has ever undertaken". In matters of social policy, Karamanlis's government has followed a largely
liberal policy. In the spring of 2006, the Ministry of Education repealed a law continuously in effect from 1936 (including 20 years of socialist rule), which required approval by the local Orthodox Christian Metropolitan for the building of non-Orthodox houses of worship. At the outset of the year, prime minister Karamanlis announced the initiative of his government for a new amendment to the
Constitution. He stated that one of the central issues of this amendment will be the legalisation of
private universities in Greece, operating on a
non-profit basis. Greece has for years experienced a mass exodus of "educational immigrants" to other countries' Higher Education institutions, where they move to study; this creates a chronic problem for Greece, in terms of loss of capital as well as human resources, since many of those students opt to seek employment in the countries they studied, after getting their degrees (it is characteristic Greece is by far the leading country in the world in terms of students abroad as a percentage of the general population, with 5250 students per million, compared to second Malaysia's 1780 students per million inhabitants). Proponents of non-state owned Universities claim that the State's constitutionally mandated monopoly on
Higher Education is responsible for these problems. Attempted changes in
Greek higher education have encountered fierce opposition from the other parties, as well as from the majority of the academic community, both
professors and
students. An attempt to pass several changes concerning the operation of Greek universities resulted in large-scale demonstrations, bringing together tens of thousands of
protesters, and, finally, the closure of most institutions by protesting students in the summer of 2006. The semester's exam period was lost and postponed until the fall, while the government shelved the changes and claimed that no bill would be put to a parliamentary vote before a more extensive dialogue had been held with students. However, without any further
dialogue, the
legislation was passed in 2007.
2007 re-election in 2006 In the
2007 general election, Karamanlis was re-elected with a
diminished majority, following the
2007 Greek forest fires that ravaged much of western
Peloponnese and southern
Euboea. He pledged to continue with his
reform and
privatization programme as well as to form a new Cabinet. On 19 September 2007, he presented a new cabinet.
2009 elections In the
2009 general election, Karamanlis and New Democracy were voted out of the government. He stepped down on 30 November after elections within the New Democracy party for the election of new party leader. ==Criticism==