The paper examines the relationship between the severe economic crisis
facing Greece and the country’s social protection system, arguing that
this relationship is ambivalent. On one level, the welfare state itself has
contributed in a far from trivial way to the fiscal crisis of the state, its
various failures including huge deficits in key programmes such as
pensions and health. On another level, the crisis and the measures to
counter it deprive the welfare state of resources, while at the same time
setting in motion sweeping changes. On a third level, social protection
can help cope with the consequences of the crisis, but enhancing its
capacity to do so will require considerable reconfiguration and proper
funding of social safety nets. The paper concludes by discussing the
prospects for a revival of welfare state building in Greece in the current
harsh climate.