The Greek Financial Crisis Essay examples

Additionally, the Greek government has also implement healthcare and pension reforms, banning increases of pensions for at least three years. (Hewitt. Gavin, 2010). On the other hand, the super-national government ECB has also launched the Securities Market Program, which allows the ECB to start buying government bonds in order to fight the crisis. Hoping to able to pump more money

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 country adopted the Euro in 2001, three years after many other EU countries had already done so, due to budget deficits the country was going through whilst under the drachma (Buchanan, 2015). As a result of their adoption of the Euro, they experienced a period of economic growth from 2001-2007, but many economists deemed it “unsustainable” due to the country taking out cheap loans through the EU (Buchanan, 2015). In 2008, when the global market crashed, Greece was unable to climb out of debt, as unlike in the past, where it could simply print more money, due to them being under the Euro, which is controlled by the European Central Bank, they were unable to do so. As a result, unemployment skyrocketed in the country, reaching heights of 25% (Buchanan, 2015). Following the beginning of the debt crisis, the number of terror incidents spiked from 18 in 2007 to 118 in 2009 (START, 2016a). As many domestic terror organizations in Greece are anti-capitalist, they likely blamed the foreign corporations and banks for the financial crisis and attacked their property as a result. When Greece was bailed out twice, once in 2010 and again in 2012, it unfortunately did not fix the problem as the money the country was given was simply turned around and used to pay off international debts rather than stimulate the economy (Buchanan, 2015). This failure to protect the investments of the Greek people may have led to another spike in incidents in 2013 (START,

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

Greece is one of many countries that have had its vicissitudes that have occurred frequently throughout history. There have been multiple leaders, wars, debts, and losses that have been recorded through history. Although Greece has had its many eras, “Each era has its own related sphere of interest.” (History of Greece). The complications that originated in ancient Greece are now reoccurring in present day to an extent. Fortunately, Greece is a country that is very strong; they are not afraid to fight for what they feel is right. It also helps that Greece stays out of any worldly dilemma that does not have anything to do with them. Of course, there have been times in which Greece has been defeated or taken advantage of, but the country did

The Golden Age of Greece is well known for its sculptures, buildings, rulers, and philosophies. Today, modern Greece is known for having economic crisis's as well as political turmoils. Greece's problems began when they joined the European Union. Greek drachma was officially replaced by the euro when they joined. Greece approved the euro in 2001, not knowing what they were getting in to. When the Prime Minister Konstantinos Karamanlis came to power he realized that the budget deficit was not 1.5%, but 8.3%. That outstanding amount greatly hurt the economy. By 2008, Greece's tax collection crumpled and unemployment was at an all time high. Unfortunately, by 2014, 30% of Greek's population did not have a job (Greece Debt Crisis). In contrast, today's Greece is a complete different from the Golden Age. Greek unemployment soared as austerity took its toll.

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,

political scientists have argued that the root of Greece’s economic crisis is political. Greece has a

Greece’s financial issues have always been apparent, but now it’s becoming impossible for the government to hide their financial issues.

The roots of Greece’s economic problems extend deep down into the recesses of history. After the government dropped the drachma for the euro in 2001, the economy started to grow by an average of 4% annually, almost twice the European Union average. Interest rates were low, unemployment was dropping, and trade was at an all-time high. However, these promising indicators masked horrible fiscal governance, growing government debt and declining current account balances. Greece was banking on the rapid economic growth to build upwards on highly unstable foundations. In 2008, the inevitable happened – the Greek debt crisis.

As of 2014, Greece -along with other nations of the Eurozone- is facing grave sovereign debt issues, which have helped worsen the economic and political aspects of the nation. Some members, like the case of Ireland, Portugal, Spain and the aforementioned Hellenic nation, have unendurable levels of public debt, and have been receiving aid packages from the European Union and International Monetary Fund to avoid default. However, despite these financial aids, the nation still presents economic complications that threaten to affect the country 's payments to its international commitment. Similarly, such loans and other measures taken in order to control the crisis (budget and job cuts, among others, which will be later explained) have provoked violent riots and strikes, leaving the nation in a constant state of unrest.

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

This paper will provide a brief history of Greece and reviews the modern day problems that may force Greece out of the Eurozone. Indeed, history is being made on a daily basis as the prospect of a Greek exit would steer both the nation and the Eurozone into uncharted territory. This is a cautionary

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

Although a commonly accepted view is that the hidden budget deficit in Greece is the beginning of the European sovereign debt crisis, the real causes of this economic crisis can be various. To reveal the whole event, a comprehensive review of the background is