Greece : A Period Of Economic Crisis

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In 2009 Greece hit a period of economic crisis. The Greek government had made debt obligations that they could not fulfill. As a result, Greece entered a period of deep economic down turn. Given the nature of how the European Union (EU) is constructed with an internal market economy, Greece’s issues spread to Ireland and Portugal. Eventually, it led to the European debt crisis where Greece, Portugal, Ireland, Spain, and Cyprus could not pay back government debts. In the same fashion that Greece affected Ireland and Portugal, the crisis would affect all of Europe, and so the European Central Bank and European Commission of the EU funded bailouts totaling $264 billion to try and stop this from happening. As of now, Greece is the only…show more content…
Even in the 19th century, Greece faced economic hardships, needing external loans in 1826, 1843, 1860, and 1894. Greece was off to a rough start. A failure to recover from this will cause the coming debt crisis. While in the 20th century, Greece hit an economic boom in the 1950’s and was pointing towards steady improvement. The Greek government quickly managed to prove this wrong by the 80’s and failed itself yet again. Greece’s economy started falling behind in comparison to the rest of the world. This is because its economic base never moved away from agriculture. British ambassador to Greece, Michael Palairet, noted how Greece failed to “culminate in any ‘genuine take-off into industrialization.’” It almost looked as if Greece was a developing country rather than an advanced one. Problems that persisted in Greece included tax evasion, widespread corruption, congested ports that would take fifteen days to export (nearly twice as long as its neighbors), a slowed down court that would take three years longer to resolve commercial disputes than courts in France or Austria, and a lack of proper mapping of Greek territory that led to only 17% of Greece’s properties being identifiable. The government could never seem to push its country in the right direction and clearly managed its resources poorly. Essentially, all throughout history Greece has failed
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