Greece And The European Union

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1 Abstract: Purpose of the Research “Tipping point” may be defined as the critical point in a situation, process or system beyond which a significant and often unstoppable effect or change takes place. In this analysis, “tipping point” refers to the dilemma Greece faces. What are some of the questions the Greek crisis in the Eurozone may raise? How did the Greek sovereign debt crisis begin? How will the Greek crisis evolve? How will the crisis influence the future of European Union member states as well as the Continent as a whole? How should citizens in European countries understand the crisis? My research aims to: 1) understand Greece’s situation in the Eurozone through an analysis of history and economy; 2) explain the…show more content…
1.3 The Present Debt Crisis – The Past 5 Years (Greece in the Eurozone) Greece has suffered through a vicious circle of recession over the past five years. The Greek economy experienced a series of successive setbacks during this period. Since 2010, the Greek economy contracted more than 20%. The investment level decreased by 86 % as compared to 2008 (IMF, 2013b). The continuous drop in GDP, which in 2011 surpassed the historical maximum for the entire postwar period, led to a rapid decline in domestic demand. Unemployment more than doubled within the first three years of austerity reaching 25.4% in August 2012. More than half the population between 15–24 years of age or 57%, is unemployed (Eurostat, 2012), homelessness increased by 25% from 2009 to 2011 as suicide rates hit record levels, increasing 25% from 2009-2010 and an additional 40% from 2010-2011 (Reynolds, 2015). In early 2014, unemployment exceeded 28%; youth unemployment rose to 63%, which led young, educated people to emigrate in large numbers (Visvizi, 2014). Greece’s uncertain future remains a troubling predicament on the periphery of the European Union. II. Background 2.1 The Formation of the European Community/Union: Integration’s Twentieth Century Narrative – ‘No More War’ As an advisor to Franklin Delano Roosevelt during World War II, Jean Monnet, the former League of Nations official, first conceived of the
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