ell in this new environment. Greece has entered a long and difficult phase of structural reforms, including cutting the state-controlled sector of the economy down to size, overhauling of the social security system, and adjusting Greek public administration to the rapidly shifting reality of European integration and globalization. There is still a long distance to travel in this direction. Many people, including most notably Mr Simitis, refer to the task of modernization of Greece. This term is open to many different definitions. If by modernization -or simply reform, as a less heavily loaded term- we understand the process through which Greece can adjust to a rapidly changing European and international environment, it is interesting to observe that the dividing line between reformists/modernizers on the one hand and conservatives/populists on the other cuts right across the two main political parties in Greece. The Socialists, under the leadership of Mr Simitis have taken the lead in this process; but he faces strong opposition both inside his own party and from various organized interest groups."Better late than ever"Greece has travelled a long distance since the fall of the colonels’ dictatorship in 1974. Democracy has been consolidated, and this has been achieved in an extremely peaceful manner. Greek democracy has had its share of demagogues, and public opinion fell sometimes prey to populist rhetoric. This is, of course, not totally unknown in other democracies. It could be argued that, for several years, economic stabilization and much needed structural reforms were sacrificed on the altar of democratic consolidation.Membership of the European Union has acted as a powerful catalyst for domestic reform/modernization. Adjustment to the requirements of membership of this very unusual club, in which the most advanced democracies and mixed economies of Europe experiment in new forms of pooling of sovereignty, has been difficult ...