For several decades, Greece has been mismanaged by the social-democratic party Pasok and the conservative New Democracy. Between the two of them they have run the economy into the ground, while corruption flourished, unemployment figures hit new records and a large proportion of the economy has consisted of bribery. During this time the public sector was overmanned and checks were as good as non-existent, so that even dead people received a pension.
The result was that the national debt ended up at 160% of BNP, which was revealed when the bubble burst and the Greek government was obliged to lay its cards on the EU table. Since then, the EU and IMF have been pumping money into the country to keep the system afloat. The condition was, however, that those who had rocked the boat accept a colossal savings package and got the implementation of tax collection sorted out.