The Eu And The European Crisis

In order to be a member of the EU, you must be able to maintain and prove a stable economy. Greece's economic difficulties, it have impacted the EU as a whole. If one country is unable to prove their economy

In 1999, ten European nations joined together to create an economic and monetary union known as the Eurozone. Countries, such as Germany, have thrived with the euro but nations, like Greece, have deteriorated since its adoption of the euro in 2001. The Eurozone was created in 1999 and currently consists of eighteen European nations united under the European Central Bank and all use the euro. The Eurozone has a one point six percent inflation rate and an eleven point six percent unemployment rate in 2014. Greece joined the Eurozone in 2001 and was the poorest European Union member at the time with a two point six percent inflation rate3 (James, 2000). Greece had a long economic history before joining the Eurozone. The economy flourished from 1960 to 1970 with low inflation and modernization and industrialization occurring. The market crash in the late 1970’s led Greece into a state of recession that the nation is still struggling with. Military failures, the PASOK party and the introduction of the euro have further tarnished Greece’s economic stability. The nation struggles with lack of competitiveness, high deficit, and inflation. Greece has many options like bailouts, rescue packages, and PPP to help dig it out of this recession. The best option is to abandon the Eurozone and go back to the drachma. Greece’s inflation and deficit are increasing more and more and loans and bailouts have not worked in the past. Leaving the Eurozone will allow Greece to restructure and rebuild

The economic crisis of 2008 in New York had ripple effects around the world, causing deep structural problems within the European Union to crumble the economies of several countries. These countries, known as the PIGS, are made up of Portugal, Ireland, Greece, and Spain, and collectively hold most of the sovereign debt problems of the European Union. After fast growth early in the decade, these countries were spending too much money and not securing their own banking sectors with enough capital. Soon, the debt the PIGS owed caused massive problems throughout the EU, and Germany and France had to come to the rescue of these poorly managed countries. (Greek Crisis Timeline, 1) Now, in 2012, the issue has yet to be fully resolved. Greece is still sinking, and a massive bailout for Greece's banks is required. The debate is whether Germany should continue bailing out Greece and collecting interest on its loans, or whether Greece should try to separate itself from the broader European Union, in an attempt to manage its own finances and declare bankruptcy in order to save itself from crippling interest payments. Each path offers an escape from the present situation that Greece finds itself in, but only the path of bailout results in a harmonious European Union. If Greece fragments off from the EU, then the entire union is weakened as a result. I believe that Greece should accept the terms of the bailout that Germany has provided, and should undergo several years

The Greece debt problem arose in the year 2009. It is considered as the first sovereign debt problem that has ever arisen in the Eurozone. The main contributing factors to this problem included the weak Greece economy, the long period of Recession and the crisis in confidence among its governmental leaders. Later that year the country was believed to be in a situation where it was not able to meet its debt obligations. This was after the country announced that it had been understating its deficit figures for many years. This action saw Greece shut out from borrowing any funds in the financial market. This forced the International Monetary Fund, the European Commission and the European Central Bank to be able to issue the first and second bailouts in Greece. Greece, however, failed to be able to repay back their debts due to many social, political and economic factors that surrounded the country. The country was once again in a state of bankruptcy. The Eurozone had to be able to intervene to be able to help the country and on July 13, 2015, the country was issued the third bailout but on very strict and precise conditions.

Since the 1990s, the Greek economy has been suffering from a deficit in its accounts due to years of funds mismanagement and poor fiscal policies. However, the task of dealing with the issue was passed on from one executive to the next, hence exacerbating the problem.

Greece has a history which really distinguishes its nation from the rest. In 1829, Greece achieved independence from the Ottoman Empire. During the second half of the nineteenth century and the first half of the twentieth century, it gradually added neighboring islands and territories, most with Greek-speaking populations. Following Germany’s defeat in World War II in 1949, Greece joined NATO in 1952. In 1981, Greece joined the EC, which is now the EU, and it became the twelfth member of the European Economic and Monetary Union in 2001. In 2010, the prospect of a Greek default on its euro-denominated debt created severe strains within the EMU and raised the question of whether a member country might voluntarily

Around then period, numerous Greeks neglect to pay their assessments. The foundation for Greece emergency emerged in late 2009 when the new communist government was driven by Prime Minister George Papandreou, uncovered the appraisals of the administration deficiency. The other reason is high bonds spread show declining financial specialist trust in the Greek economy. Greece and its European loan bosses reported an understanding in Brussels on July 13 that plans to determine the nation 's obligation emergency and keep it in the Eurozone. It was accounted for that Greece will be liable to one of the top VAT rate 23% including eateries while well-known occasion destinations in the Greek islands will no more profit by a lower VAT rate. Likewise Greece must "receive the important strides to fortify the monetary area" and "disposing of any plausibility for political obstruction, particularly in arrangement. Greece had issue with the administration so Greece needs to enhance administration. So the trusts will be set up in Greece and oversaw by Greece powers yet "under the supervision of the significant European organizations." The European Stability Mechanism ESM record says that the summit "observes financing needs of in the middle of €82bn and €86bn. Likewise observes Greece critical financing of €7bn by twentieth July and another €5bn by the center of Aug. Numerous individuals trust that Greece 's obligation weight can never be

Greece's economy is in far worse shape than when the outlines of a deal were put together last October, so there is a bigger financial hole to plug. Germany and other rescuers don't want to offer more money, not least

There must be something wrong inside Greece. However, it is hard to claim that the Greek government intented to show a misleading report to the EMU (European Monetary Union) or Greek government itself cannot even understand how bad status they were in. According to the criteria of EMU, Greece must decrease the debt and improve the financial performance, so a new government which was settled in 1993 puts forward a convergence policy in order to restrict the

The first thing that came to my mind about international issue was Greece. On August 11th, Greece said that it had reached a deal with its international creditors for a third and possibly a final bailout that would let them borrow up to to 86 billion euros, equivalent of $94.4 billion, but at price. High number of European officials expressed extreme caution and it remained uncertain. Would the accord satisfy Germany or ratified by the EU? On August 26th, when the country is scheduled to make a payment of 3.2 billion euros on a bond held by the European Central Bank, Greece will need to borrow more money. The International Monetary Fund has agreed but threatened to withdraw support to help Greece unless the European leaders agree to a substantial debt relief. But here’s the question: Should Greece become its own country and leave the European Union? Should we bail them out of this debt? Despite the consequences, Greece has a better chance of recovering by leaving the European Union and creating its own currency compared to staying and dragging down the state of the international economy.

Today, Greek banks are closed and citizens are unable to withdraw funds from ATMs in excess of 60 euro a day. The country is on the brink of an exit from the EU and negotiations are floundering. There are those who argue that Greece has a long history of default and bad credit - according to economists Carmen M. Reinhart and Kenneth S. Rogoff "Greece has spent more time in default to its creditors than any other European country" (Lynn, M., 2011). This suggests to some that allowing Greece to join the EU was simply a bad idea and it is time for them to leave Europe and join with Turkey and Cyprus in a union that would solve the unemployment crisis and get them producing goods and on-track to stability (Asa_El, A.,

Being a part of the EU, it may ask for additional bailout funds and debt relief. But these will require stringer austerity measures to be followed by the Greek government. It would require them to cut public pensions, increase taxes, and privatise certain government owned businesses. This strategy of austerity measures, however, did not produce the expected results in the previous bailout and led to a Greek Depression and made it even harder for the government to pay back debt.

This section aims to discuss the root of two aspects of the Greek debt crisis.

The burden of debt in the European Union, especially in Greece and Ireland, is detrimental to the continent 's economy and people. Not only is it an issue throughout Europe itself, but it has become a dominant issue in global economics as well. As these European governments struggle to get back on their feet, the fate of the euro is clinging for life. It has become clear of the extremely high deficits, some at over 100% GDP, which are attached to several EU countries. This European crisis is a continuation of the global financial crisis, but also an issue which was brought upon themselves, largely by Greece. The Greek government

The divulgence of the genuine Greek monetary circumstance raised genuine questions about the nation 's capability to meet its obligations. The following rating downsizes and steadily climbing premium rates prompted a deterioration of Greece 's right to gain entrance to capital markets that made it significantly more troublesome and in the end incomprehensible for the legislature to refinance itself, creating a down spiral for the Greek economy. So by then, the Government needed to speak to its fellow members of the European Union and IMF for bailout. The bailout, then again, failed to restore market trust in the Greek economy. In addition, it failed to end the contagion of the crisis to other nations of the euro area.