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• The paper engages with the devastating consequences that the belated neoliberal reformation of the Greek welfare state – initiated after the 2009 economic crisis – had on income inequality and poverty. • It is argued that these reformations rely on the manner with which Greece has developed its relations within the global – mostly European – capitalist division of labor as a peripheral economy. Greece's economic affairs are approached as intimately conditioned by a multifaceted institutional structure of dependencies that outstrips its ability to exercise economic policy for its own interest. • Essentially built upon premises of a core-periphery dependency paradigm, the paper takes the view that since the onset of the 2008 global crisis, the EU anti-labor agenda is extended to country-members – such as Greece – which were long regarded as being poorly integrated or "lagged behind". The large-scale reformation of the Greek welfare state is exemplified and a novel interpretation of estimating the country's poverty level with attention paid to the ineffectiveness of the implemented reforms, is offered. • New estimation methods show the failure of neoliberal welfare policy in assisting even the most vulnerable members of the population, a process known as "targeting". This last part is further supported by genuine evidence drawn from several waves of microdata surveys (see Section 6) illustrating the uneven relation between Greece and the EU. • Three different measures of poverty and efficiency are presented based on original analyses of the official datasets, showing the extent of the overall income loss and the widening gap between Greece and the EU. The paper holds a critical view on EU austerity policies, with particular emphasis given to Greece. It is maintained that the main causes for the implementation of neoliberal reforms should be examined in the manner with which the Greek economy has developed in relation with the European capitalist division of labor as a peripheral economy. Greece is approached as intimately conditioned by a multifaceted institutional structure of dependencies that outstrips the country's ability to exercise economic policy for its own social interests. Essentially built upon the premises of a core-periphery dependency paradigm, the periodic post-war reconfigurations of the EU architectural design offered enough room to the formation of a stricter policy framework along these lines. By developing a set of differentiated indices on European poverty, the devastating consequences of the belated neoliberal reformation of the country's welfare state are highlighted. All calculations are based on microdata sets of EUSILC surveys. [ABSTRACT FROM AUTHOR]