Since 2010 Greece has been between a rock and a hard place. In particular, since May 2010 the so-called troika (European Commission, International Monetary Fund, and European Central Bank) has provided financial support to Greece through an economic adjustment program while the Greek state is forced to undergo holistic austerity. This essay supports the view that Greece is a failing state: it suffers a systemic ailment and declines rapidly but has not yet reached its bottom. It can reemerge as a healthy state, but only if a “grand strategy” is applied. This essay scrutinizes the main reasons behind Greece’s dire condition and puts forward a “smart state” theory to explore ways to remedy the situation. The essay also suggests how Greece can exit from its labyrinth and emerge as a smart state.