The elections in the 1980's brought the Panhellenic Socialist Party (PASOK) to power. Under the Panhellenic Socialist Movement, despite economic and taxation problems, the Greek welfare state expanded.
When the PASOK came to power, it enacted the National Health System , services became free. In the 1990's the program changed when the conservative government introduced a small fee to reduce demand.
Very nice, except the government couldn't afford it.
The PASOK government change social security in the 1980s, they increasing the monthly pensions for large portions of the population and introduced pensions and medical benefits for retired farmers. The government needed to subsidize the funds in order for the system to function at all.
All well and good, except the government couldn't afford this either.
Upon joining the Euro, the Greece government went on a spending spree, allowing public sector workers' wages to nearly double over the last decade.
Greece's problem is it's inability to control government spending on public employees and social services (welfare) that it simply can not afford. This is why austerity is being shoved down their throats
Post hoc, ergo propter hoc?