The article constitutes a preliminary attempt to address the effects of the current economic crisis on the Greek environment. The austerity policies and other conditions imposed by the Memoranda of Understanding with the troika of international lenders are undermining the progress made in the pre-crisis years in the framework of European Union (EU) environmental policy. The latter conflicts with the EU’s new priorities in the context of the Greek bailout programme. Examples include the air pollution caused by fuel substitution following a vast increase in heating fuel tax, the escalating environmental conflict related to gold-mining investment, and the crumbling environmental management apparatus. Strictly monitored by the European Commission, European Central Bank and International Monetary Fund, Greece needs to carefully delineate the trade-offs inherent in the country’s ‘new’ model of growth. Proper policies are needed to avoid natural resource depletion, environmental decay and further national wealth reduction in the years to come.