Western Europe

A Peek Into Several European Countries

Greece

A Quick View of the Economic Crisis in Greece

By: Tuva Aasen

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Greece, a country with an estimated population of around 11.3 million has long been in the spotlight regarding their troubling economy.For over five years, Greece has been in recession, which has resulted in an unemployment rate of 22% and leaving younger people without jobs. Many argue that this crisis has evolved as a result of long years of uncontrolled spending, a lack of implementing financial reforms and options of cheap loans. According to the national debt clock, as of today Greece’s debt is at €378,876,367,477, so one might ask what Greece does to survive. Greece is part of the European Union (EU) as has been receiving regular financial payments from them as well as the European Central Bank (ECB) and the International Monetary Fund (IMF). Obviously, this doesn’t come without a price. Citizens of Greece have faced an increase in taxes and severe cuts in services provided by their government.

And as Angela Merkel, a chancellor of Germany put it: “In the long run, you can’t live beyond your means.”

With an economic situation this critical, and a debt that high it will likely take years to resolve this economic struggle, and it will be interesting to see how it will unfold in the future.

Related Links:

http://www.opendemocracy.net/openeconomy/takis-s-pappas/causes-of-greek-crisis-are-in-greek-politics

http://www.cnn.com/2010/BUSINESS/02/10/greek.debt.qanda/index.html

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