Ever since the end of 2009, Greece has been involved in a financial and economic crisis that has been record breaking and shattered world records in terms of its severity and worldwide effects. The Greek government, since the beginning of the crisis, has attempted to take several governmental measures to try and “stop the bleeding,” including economy policy changes, dramatic government spending and budget cuts and the implementation of new taxes for citizens. In addition to this, the government has tried to alter the perceptions of Greek government and economy by the rest of the world in an effort to appear both more liberal and more democratic. Greece has also been working to privatize many previous
The Troika, made up of the International Monetary Fund, European Commissions and the European Central Bank have the most to lose in this debt crisis as they own 78% of Greek debt. With so much to lose we have seen European “bailout” agreements that mostly front the Greek government more money coupled with crippling austerity in an effort to “rebuild” the economy. Austerity discourages growth as it cuts the spending of the government who is by far the biggest spender in the economy. The effects of austerity can be devastating, but the true effects are often hidden beneath the messages we get from mainstream news sources. The stereotype of the Greek people as lazy and tax evading has desensitized the public and has made austerity seem like more of a sensible option. The media messages have made strict austerity measures seem justified and in effect have hegemozined the Greek people.
The Greek people are suffering while trying to keep their jobs to pay for the rising taxes. With an unemployment rate of over 60%, the youth even have a difficult time finding jobs to help their families. Being unemployed is not only a rough situation to be in with no money is coming in, there is more to it, “The longer a person is unemployed, the less employable they become. Re-entering the workforce also becomes more difficult and more expensive.” (Rodgers 9). Not only that, but people in Greece lose their health insurance after being out of work for over 2 years. The unemployment factor is a big effect on the Greek people because of the
EURO CRISIS: The European debt crisis is the shorthand term for Europe’s struggle to pay the debts it has built up in recent decades. Five of the region’s countries – Greece, Portugal, Ireland, Italy, and Spain – have, to varying degrees, failed to generate enough economic growth to make their ability to pay back bondholders the guarantee it was intended to be. Although these five were seen as being the countries in immediate danger of a possible default, the crisis has far-reaching consequences that extend beyond their borders to the world as a whole.
As the rating agencies: Moody's, S&P, and Fitch continue to downgrade Eurozone debt from France to the PIIGS; the interest costs for government borrowing in Eurozone countries, with Germany excepted, continue to rise, as does the cost for the European Financial Stability Facility (EFSF), a creation of the European Central Bank to provide liquidity. The Eurozone has been under pressure since the global recovery began in 2009-2010 as investors began to see the troubling signs of government overspending and high GDP ratios across the 17 member group. First to this bond vigilante parade was Greece, a member nation
Being unaware about issues on the other side of the world made me realize on intriguing economic debt crisis that is going on in countries that seem like they are holding together. Greece and the European was a great issue to discuss and view both sides before since I was unaware that there was a long going crisis going on in this side of the world. Greece can either get a so many bailouts repeatedly or they can fend for themselves to find how the country is able pay back the debt they owed the EU within the past years. In my opinion, I think that Greece should give the money from the EU to survive.
History tends to repeat itself and Greece is no exception. Greece’s current economic crisis can be partly blamed on Greek mythology. It can be seen with Greece’s prime minister Alexis Tsipras decisions in policy which have resulted in similar repercussions as the myths. For example,
From the Financial crisis that struck the United States in 2008, to the world economic crisis and currently the European debt and sovereign crisis, the snowball is growing each day as the whole world's economy is heading towards the rock bottom. This project tackles the issue and the causes of the European debt crisis and its consequences on the euro currency and on the international financial markets. It also focuses on examining the austerity measures and policies taken by European governments to bail their countries out of the turmoil, and finally it tenders solutions that could be undertaken by governments to face or unravel such
political scientists have argued that the root of Greece’s economic crisis is political. Greece has a
With an area of roughly 131,957 square kilometers, approximately 50,949 square miles (“Greece Facts,” n.d.), Greece has been a predominant part of European history. This beautiful, ancient country is well-known for their vibrant history and enchanting Greek mythology. Today, however, Greece is more known for their deepening economic crisis. The tumultuous economic issues began around World War II as a result of the German occupation of Greece. Problems escalated following the occupation as the country fell into a civil war. "Communist and government troops tore the country apart."(Buchanan, 2015). In 1949, the government found themselves victorious but left with an economically broken Greece. Though the country is currently enduring hardships, there is still much hope for the future.
A country who’s economy was devastated by the monetary exports demanded of them by the second world war, Greece has shown great financial fluctuation and vulnerability within the last 80 years, resulting in one of the most disputed economic records in the history of the European Union. Dubbed the ‘Greek Economic Miracle’, Greece showed great resilience throughout the 1950’s and 1960’s, with credit to their superior food trade and shipping industry, continuing to produce high levels of economic growth in contrast to others that had also been affected by the war. With the Treaty of Accession (1979) entering into force on 1st January 1981, Greek’s commitment to the European Communities (European Union) proved pivotal regarding it’s controversial qualification into the Eurozone in 2000. Owing to this, in an attempt to recover the unstable foundations of its economy, Greece has since been subject to various regulations and measures of austerity, leaving what was once a highly commended country both financially and socially, in a deplorable state of desperation.
The sovereign debt crisis in Greece has attained several controversial bailouts which has caused a huge fuss to the Greek citizens and the tension of political instability in negotiation in the Eurozone. This literature review tends to answer 3 main questions as follows: (1) the causes of sovereign debt crisis in Greece, (2) the implication of the crisis currently and (3) the ways of mitigating the
The financial headlines of 2012 were prevalent with the tribulations of the Greek economy. Its problems, in the eyes of many of the other nations of the euro zone, were not only negatively impacting the prosperity of the Greeks, but also the viability of the European Union. The country as a whole requires a major restructuring. Not only are drastic changes needed in financial and economic policies, but the Greeks need to understand their attitude of government entitlements cannot be sustained. The mismanagement of the Greek economy is also evident in its place in the global market community. It has not found the path that a county needs to follow to become an active member of the vibrant,
The Eurozone crisis is defined as a multi-year debt struggle that began as early as 2009 and originated in several of the Eurozone states. These countries were not able to pay back the debt they continuously built up even with help from institutions such as the European Financial Stability Facility, the European Central Bank, and the International Monetary Fund. The debt the European Union members acquired were not considered a crisis until after the Great Recession in 2009. This is because some countries released false reports, which soon became discovered, regarding their economic stance. States were able to deceive other nations by inconsistent accounting, off-balance sheet transactions, and the use of complex currency and credit derivatives structures. Greece is considered the main culprit for causing the majority of the debt within the European Union. The Economic and Financial Committee are responsible for receiving and organizing these reports. Fabricated reports were easy for nations to submit due to the established rules set and the organization of the Maastricht Treaty created on February 7, 1992 right before the European Union was established.
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.