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Greece : A Major Economic Crisis

Decent Essays
To start off, Europe (as a political entity) is in a major economic crisis. The IMF (International Monetary Fund) was set up after World War Two in order to rebuild Europe and other countries of the world. The eurozone and Greece have been at a gridlock since the Greek economy has dropped so significantly. As stated in the article, (paraphrasing here) the eurozone will only give aid to Greece if the IMF agrees to give them funds as well (pushed by several countries in the European Union). The IMF is refusing to help bail out Greece any further until it is certain that Greece will uphold the terms of the bond agreements. In February, both the IMF and the eurozone agreed to subject Greece to more measures to ensure that Greece meets its…show more content…
Discussion

In my opinion, the IMF is protecting its interest when it pertains to not becoming laxed on the policies for another bailout of Greece. The European countries are also protecting their interest to ensure that they are not feeling the full burden of Greece’s economical downfall. Also, I think the European countries are trying their best to ensure that Greece does not lose control of its political systems. During a time of economic and political instability, the populace of a country can become desperate and may not have any places to work, thus causing anger and frustration to rise up against the current ruling regime. Also, the IMF is losing its influence in many countries as it is having a hard time competing against the Asian Bank. On top of the competitors, the IMF has historically had a difficult time in obtaining the funding it has lended out to various countries. In my opinion, both the IMF and the countries of Europe need to help out Greece one last time. If Greece’s economy continues to drop further, both the IMF and the countries in Europe will lose their influence. Of course, I think stricter rules should be imposed on Greece and the penalties for not adhering to the rules should be harsh as well. To illustrate my point, I will use an example which came from the economic recession of 2008 in the United States. The government of the United States chose to bail out GM, (General
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