As a result of the loan agreements that the Greek government has concluded in the past two years with the International Monetary Fund, the European Central Bank and the European Commission, a policy of internal devaluation has been adopted in an effort to avoid a default of the economy and to allow Greece to remain within the Eurozone. The structural reforms undertaken in line with the loan agreements have been based on the premise that labour market regulation in Greece constituted a significant barrier to growth. To that end, essential features of the Greek labour law system have been amended, with significant implications for the role of the state and for the industrial relations actors. The reforms are not distributionally neutral, but aim to liberalise further and to deregulate key parts of the labour market and industrial relations system, and reduce the size and influence of the welfare state. There is growing evidence that the reforms have led to the deterioration of working and living conditions, while failing to deliver growth. © Industrial Law Society; all rights reserved.