English Translation
I wish things were different.
“η κατάσταση” is a noun phrase, where “η” is the feminine singular definite article, meaning “the,” and “κατάσταση” is the noun in the nominative case, meaning “situation,” “state,” or “condition.” The nominative case is used because “κατάσταση” is the subject of the verb “εύχομαι” - it is the thing that is being wished about.