ABSTRACT
Greece was the first victim of the ‘Euro-crisis’ in the European Union. 1 Many factors led to Greece’s dire economic situation, among them its high debt and deficit ratios and the very high rates of tax evasion. Following fears of a Greek default and the ‘domino’ effect this would bring about in the Eurozone countries, Greece received ‘bailout’ loans in 2010. The financial aid packages signed between Greece and the Troika governed issues such as fiscal consolidation, significant reduction in pensions and salaries, tax increases and lay-offs both in the public and private sectors. The effect of these packages was a significant increase in the rate of unemployment, an increase in crime, the rise of right-wing parties, social unrest and a governmental crisis. In this political, economic and social environment the number of indebted and over-indebted consumers rose to new heights and the Greek government was forced to adopt new laws to deal with this situation. This chapter will first provide the context within which indebtedness and over-indebtedness arose in Greece, before sketching a picture of indebted and over-indebted consumers, and will critically assess the legal framework that was adopted to tackle the growing problem of indebtedness and over-indebtedness in Greece.
