AbstractThis paper examines the delayed development of the welfare state in Greece and its restructuring since the early 1990s. The emphasis is on factors, such as the rapid shift from pre‐Fordist to post‐Fordist socio‐economic structures, the weak development of contractual relationships and a solidaristic culture, and the extensive reproduction of a statist/clientelist form of social organization strongly linked to a high degree of social fragmentation and a particularistic appropriation of welfare benefits and services, which have hindered the full maturation of social citizenship in Greek society up to now.An expensive trend of social protection in conjunction with some major law reforms in the early 1980s contributed to the development of a “weak form” of universalism. These trends were soon overturned, however, well before Greek society could develop a welfare state, under the pressure of a serious fiscal crisis, low economic growth, increasing international competition, significant demographic changes and a fragile social consensus.Thus, the national health care system has hardly succeeded in establishing universal coverage, the social insurance system has remained highly fragmented and dualist, while policy measures for tackling increasing unemployment, hardship and poverty have been rudimentary. These have caused serious deadlocks and a deep institutional crisis. For this crisis to be overcome, it is essential that a new social balance promoting social solidarity is achieved in the country, while a reinvigorated Social Europe can help enormously in this direction.