The European Crisis Of Greece, Spain, And The United States

Unlike the United States, Europe was not founded by immigrants making it difficult to address effectively the current immigration crisis. First, terrorist attacks have fueled xenobia towards some groups especially arabs and muslims (Lonhi 2012). Second, the European Union’s dublin regulation which states that the first country in which asylum seekers first set foot is responsible for their asylum claim make it more a national issue rather than an European one. In other words, if refugees arrive in Italy, it automatically becomes an Italian government issue. Third, european countries that are willing to make change faced intense budget cuts causing them to prioritize their country’s economic interest instead of immigration. Nonetheless, various refugees have lost their lives in the mediterranean sea in their attempt to seek refuge in Europe. Moreover, the United Nations Refugee agency reported that the month of April has been the deadliest month on record in terms of migrant deaths. As a result, it is crucial to develop effective solutions that can help resolve this ongoing problem.

One cannot understand the Greek Financial Crises and the general European Financial Crises without understanding the history of the European Union, the creation of the euro, and the Eurozone. The countries involved in the European Financial Crises were Spain, Portugal, Iceland, Ireland and Greece. The Maastricht Treaty created the European Union in 1993. The treaty gave citizenship to all people living in the 28 member countries. This treaty led to the creation of the Euro. In order to join the Eurozone, each member country must maintain sound fiscal policies. Essentially, each country must limit national debt to 60% of gross domestic product and limit annual budget deficits to a maximum of 3% of GDP. The main reason for the greater European Financial Crises and Greece 's crises was the country 's violated the treaty restrictions. Spain, Portugal, Iceland, Ireland and Greece were unable to maintain spending within these limits. Additionally, the European Union has a monetary union but does not have a fiscal union. Each member country maintains its own independent tax and spending policies. The absence of a common fiscal tax for every member country in the EU is the reason for the current crises.

Over the 15 years the German has been widely viewed as the economic catalyst and stabilizer for its fellow European Union states. Even following the Financial Crisis in 2008, the German economy was able to bounce back quicker than neighboring Eurozone states the source of German success points to a high export led growth economy with a competitive manufacturing sector, lower unemployment, balanced budget, and low costs to borrow. With most economic indicators pointing to strong future growth, it remains to be seen whether a spillover effect occurs to the rest of the EU. Despite a number of reforms, EU countries continue to suffer due to lack of global competitiveness. In dire straits, Greece continues to leverage the support of the European Central Bank and Eurozone states to avoid another financial collapse. In support of Greece, Germany itself lent the country €56 billion, however Germany has begun to lose patience over Greece’s attempts to renegotiate terms of its bailout. As the German economy has persevered through economic turmoil, while Eurozone has struggled, Germany continues to be a shining light of prosperity in the European Union.

The music stopped on October 2009, a year after Lehman Brothers collapsed at the height of the financial crisis. Investors all over the world were shocked and creditors were equally horrified. Greece, the founder of true democracy, the originator of the olympics and the birthplace of geometry - was now $430 billion in debt. Never before had a country such as Greece imploded with such velocity and magnitude - that its government bond contracts were now considered toxic. It was an exact replay of the financial crisis, except that the insolvent borrower was now the state.

According to Cia.com, Greece has a capitalist economy with a public sector, representing about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP. However, immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP.

❖ In exchange for this bailout, severe austerity measures in Greece are to be implemented to pay off debt in the next 3 years: 3-year public sector pay freeze, privatization of public companies, civil servant benefit cuts, higher taxes on sales and fuel, increase in retirement age, and reduction in pensions.

The European sovereign debt crisis, which made it difficult or impossible for some countries in the euro area to repay or re-finance their government debt without the assistance of third parties (Haidar, Jamal Ibrahim, 2012), had already badly hurt the economies in “PIIGS”, Portugal, Ireland, Italy, Greece and Spain. This financial contagion continues to spread throughout the euro area, and becomes a dangerous threat not only to European economy, but also to global economy.

In 2014, the unemployment rate in the United States was 6.2% oppose to 26.6% in Greece . This leads to a plethora of problems beginning with the overall health of the economy. Greece’s unemployment rate may have something to do with their

The purpose of this paper is to provide an analysis of the Greek sovereign debt crisis that we witness during 2010-2014, its global impact and sustainability by examining GDP and the real interest rate. This paper will also examine that several members of the European Union such as Portugal, Italy, Ireland, Spain by comparing with Greece. These countries historically known as PIIGS with Greece. Also, this paper will analyze Argentina crisis by comparing with Greece crisis.

The global financial crisis has caused a massive deterioration in public finances in the euro area. The 2009 recession severely curtailed public revenues and weighed heavily on the welfare state. In addition, states have boarded on bank bailouts and costly stimulus packages. In 2010, no country belonging to the euro area was able to comply with the Stability and Growth Pact (SGP). Public debt in the euro area increased from 65% to 85% of GDP between 2007 and 2010.

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

Two bailouts later, with the third quickly approaching, Greece has shown the European Union that its austerity measures are not a viable or sustainable option for debt relief. With the spiraling decline of investor confidence in an economy severely trapped by debt, Greece has been under threat of being dismissed from the European Union. As of July 14, 2015, Greece’s third European Union bailout was left just out of arms reach until the nation follows through with, what has been termed ‘Draconian,’ reforms aimed at minimalizing Greece’s debt. Although Greece makes up just 2% of the European Union population, its weighted economy and potential impact on the global economy is on everyone’s mind.

The Greek debt crisis has been an ongoing problem officially beginning in 2009, but later discovered to have begun in the 1990’s, and what began as a national disaster has quickly spread to become a worldwide catastrophe. The steady income of many Greeks has declined, levels of unemployment have increased – to the highest in the EU - Elections and resignations of politicians have altered the country 's political landscape radically, the Greek parliament has passed many austerity

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

Another fundamental component in understanding the Greek healthcare system as a whole is evaluating the ability of the country to allocate resources and remain within their budget. Unfortunately, Greece is unable to stay on budget due to individual sectors not merging their resources, the absence of coordination amongst the immense amount of payers, the absence of a financial management and accounting system, and the absence of a monitoring processes (Economou, 2010). Greece’s expenditure exceeding their budget is further deepened with their improper introduction of new technology.