Reform, expansion, and defeat
The downfall of King Otto forced the great powers to search for a new sovereign who could not be drawn from their own dynasties. Their choice was a prince of the Danish Glücksburg family, who reigned as King George I of the Hellenes from 1863 to 1913; thereafter the Glücksburg dynasty reigned intermittently until the 1974 referendum rejected the institution of monarchy. To mark the beginning of the new reign, Britain ceded to Greece the Ionian Islands, over which it had exercised a protectorate since 1815—the first accession of territory to the Greek state since independence.
Political modernization
A new constitution in 1864 amplified the democratic freedoms of the 1844 constitution, although the sovereign retained substantial, and somewhat vaguely defined, powers in foreign policy. However, the realities of politics remained much as before, with numerous elections and even more frequent changes of administration as politicians formed short-lived coalitions, jockeying for power in the disproportionately large parliament. In 1875 a decisive step was taken toward political modernization when King George acknowledged that he would entrust the government to the political leader that demonstrated the confidence of a majority of the deputies in parliament. During the last quarter of the 19th century the kaleidoscopic coalitions of earlier years gave way to a two-party system in which power alternated between two men: Kharílaos Trikoúpis and Theódoros Dhiliyiánnis. Trikoúpis represented the modernizing, Westernizing trend in politics, and Dhiliyiánnis was a political boss in the traditional mold with no real program other than overturning the reforms of his archrival. Believing the modernization of the political system and economic development to be the essential preconditions of territorial expansion, Trikoúpis struggled to establish Greece’s credit in international markets and encouraged the country to industrialize. He also promoted such infrastructural projects as road building, railway construction, the building of the Corinth Canal, and the draining of Lake Kopaïs in Thessaly. Such measures, however, in addition to Trikoúpis’s parallel efforts to modernize the country’s armed forces, required funding, and the increased taxation they entailed proved an easy target for a populist demagogue such as Dhiliyiánnis. Dhiliyiánnis became increasingly popular by advocating an aggressive policy toward the Ottoman Empire, but his belligerence was to have disastrous economic consequences.
Extension of Greek borders
If Britain had hoped to suppress irredentist enthusiasm by ceding the Ionian Islands, it was sorely mistaken. The continuing agitation on the “Great Island” of Crete for union with the Greek kingdom, which erupted in periodic uprisings, caused inevitable friction in relations with the Ottoman Empire. Greece also made a rather inept attempt to exploit the latter’s discomfiture in the great Middle Eastern crisis of 1875–78, which gave rise to a war between Russia and the Ottoman Empire. The great powers, meeting in Berlin in 1878, in addition to cutting down the size of “Big Bulgaria,” which had arisen from the conflict, pressed the Ottoman government to cede the rich agricultural province of Thessaly and a part of Epirus to Greece. In 1881 the second extension of the territory of the independent state came into being, like the first—the cession of the Ionian Islands—as a result of mediation by the great powers rather than of armed conflict. In 1878, again as part of the Berlin settlement, the island of Cyprus, with its largely Greek population, came under British administration but remained formally under Ottoman sovereignty. The island was annexed by Britain in 1914, after the Ottoman Empire entered World War I on the side of the Central Powers, and became a crown colony in 1925.
Rectification of frontiers
The incorporation of Thessaly brought the northern frontier of Greece to the borders of Macedonia, which, with its mixed population of Greeks, Bulgarians, Serbs, Albanians, Turks, Vlachs, and Roma (Gypsies), was characterized by a great deal of ethnic complexity. It also brought Greece into contention with Serbia and Bulgaria, both of which also looked to Macedonia, which remained under Ottoman rule, with covetous eyes. The contest was initially conducted by means of ecclesiastical, educational, and cultural propaganda, but at the turn of the century rival guerrilla bands, financed by their respective governments (and supported by the public), sought to achieve by terror what they could not achieve by more peaceful means.
While Trikoúpis argued for the strengthening of the state as the basic precondition of territorial expansion, Deliyannis showed no such caution. His mobilization of forces in 1885 in an attempt to exploit a crisis over Bulgaria resulted in the establishment of a naval blockade by the great powers, while his support for the insurgents in Crete in 1897 led to a humiliating defeat in the Thirty Days’ War with Turkey. Greece was forced to pay compensation and to accept the adjustments made to its frontier. Another humiliation sovereign Greece faced was the installation of an international financial commission to oversee the repayment of its substantial external debts.
Emigration
Military endeavours compounded serious economic problems, which culminated in national bankruptcy in 1893. Economic difficulties were primarily responsible for the great wave of emigration, principally from the Peloponnese to the United States, that characterized the late 19th and early 20th centuries. About one-sixth of the entire population participated in this great exodus, the vast majority being male. The early emigrants had little intention of settling permanently overseas, though few ever returned to their homeland. Migrant remittances to relatives in the old country subsequently made a significant contribution to the country’s balance of payments.
The early Venizélos years
What the Greeks learned from the 1897 war was that, however weakened the Ottoman state might be, Greece was in no position to engage in single-handed military confrontation. Allies and the reinvigoration of the ill-constructed state and economy were the necessary prerequisites for a successful military threat. The latter came about under the inspired leadership of Eleuthérios Venizélos, who had emerged in the politics of his native Crete, where an autonomous regime had been established following the 1897 war. A charismatic figure who was adored and denounced in equal measure, Venizélos dominated Greek politics during the first three decades of the 20th century.