Economic

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I. Executive summary……………………………………2 II. Introduction……………………………………………2 III. Problem With Greece Economy ……………………..2 1. Finance ……………………………………………………………….……..2 2. Unemployment………………………………………………………….…..3 3. Inflation……………………………………………………………………..4 4. Tax…………………………Evasion and corruption……...……....……...5 5. GDP………………………………………………………………………….6 IV. How can Greece be saved from the debt crisis…..…7 1. The European Union is helping Greece…………………………………7 2. What has been done to help Greece?.......................................................8 V. Conclusion……………………………………………9 VI. References…………………………………………….9

I. Executive summary
Greece had been a member of NATO since 1952 and joined the European Union in the late 1981, and the Eurozone in 2002. Its economy depends heavily on tourism and other services. More than one half of the Greek industry are located in the greater Athens area. After years of profligate government spending & inaccurate report to the European Central Bank, the economy faced collapse and a sovereign debt crisis in 2010 and 2011 a great cause significant domestic political turmoil and threaten the overall stability of the euro area. Large rescue package provided emergency loans from the European Union, the European Central Bank and the International Monetary Fund (IMF) in exchange for the introduction of severe austerity measures. II. Introduction

In the past decade, Greece went on a heavy debt crisis fell to an end in late 2009, causing an economic crisis has destroyed the economy of the country, bringing down the government of it, hit up social unrest and threaten the future of the euro.

Since the change of government reveal the true size of the country's huge budget deficit, Greece has kept floating by the countries of the euro area, but a steep price: austerity measures legal requirements by France and Germany for two giant financial bailout, worth 240 billion euros, separate holes in the safety net Greece and push the country into a recession of the stimulus size near Great Depression.

After long against the idea of ​​a default, the European officials in March 2012 helped Greece to negotiate a debt restructuring agreement markers with the vast majority of private sector lending it, who has agreed to exchange $ 77 billion of Greek debt for new bonds worth as much as 75% less. It is the largest default in history. III. Problem With Greece Economy

1. Finance
Predicament of the European common currency area in finance and economics. The central element of financial debt. Some countries have public debt burden is unsustainable. In some cases, private debt is overwhelming. Meanwhile, too much debt in the public sector and / or private, that can only be served refund never mind, threatening the stability of the banking system, which owns a big amounts of it.

The economic issue concerns the cost and price. Monetary union is to bring convergence between the Member States relating to costs, prices, and, indeed, just about everything else. In fact, after the monetary union was established, the country currently struggling peripheral Eurozone - Portugal, Italy, Ireland, Greece and Spain - the cost and price continues to grow rapidly compared to other members of the delegation. This causes loss of competitiveness vis-à-vis core, led by Germany, 20pc and 40pc, led to large current account deficit (ie excess of imports over exports) and the increase of significant net international debt. 2. Unemployment

This chart includes a historical data of Greek unemployment rate. Unemployment rate in Greece to 26% in September 2012 from 25.30% in August 2012. Unemployment rate in Greece was reported by the Greek Statistical Agency Lap. In the history, from 1998 to 2012, Greece 12.2% average unemployment rate reached all-time high 26,0% in September 2012 and a record low of 7.2% in June 2008. Unemployment rate in Greece is by calculating the...
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