Greece, like many other countries, has borrowed money from others in order to be competitive in a global economy and provide for the needs of its people. However, Greece has recently taken a turn for the worst, but what has brought this once thriving country to this point? Borrowing money you cannot hope to repay is one thing, but Greece has been living outside of its means for a while now. Political parties and anti-austerity policies are one thing that politicians have been trying to use to reverse the trend that has been going since 2009.
Greece politicians have been pushing for anti-austerity policies ever since 2011 to try to reverse the trend of debt that this European country has found itself in. With employment rates reaching record highs of twenty-eight percent in 2012 the Greek parliament started to form some radical liberal and conservative parties that both had hopes of reversing the setback. As time went on, the Greek parliament passed a budget to try to secure bailout loans coming from the EU and IMF. This is just one of the many attempts to stop reduce the inevitable by raising taxes and pension cuts once again.
2013 was a better year for Greek parliament. After weeding out some legislators of a far right party, The Golden Dawn, who were criminally involved in money laundering among other crimes. The Greek legislature passed a budget for 2014 that the Prime Minister called a path to exiting the bailout. In April of 2014, the government raises nearly four billion dollars from world financial markets as a part of a sale of government bonds. Many called this an important step in economic recovery.
The next month, the radical leftist group, Syriza, wins European election by twenty-six percent of the vote. After the party takes control, they get one of their own into the Prime Minister’s position in January of 2015. One of the first actions the party takes after winning the Prime Minister, they extend the Greek Bailout and drop anti-austerity policies and undergo a eurozone approved reform program. In June, banks begin to close and emergency funding from the European Central Bank ends. Voters also reject an EU bailout in July.
Recently, Greece has made an agreement with its creditors to a third bailout. This agreement includes spending cuts to avoid bankruptcy. They have also exited the eurozone. The future of Greece is dependent on the economic strength of others in the European Union. Only time will tell if Greece will survive this unfortunate series of events.
Joseph Lowe
Sources:
http://www.bbc.com/news/world-europe-17373216
http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0
http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html
http://www.economist.com/node/21536871
Greece politicians have been pushing for anti-austerity policies ever since 2011 to try to reverse the trend of debt that this European country has found itself in. With employment rates reaching record highs of twenty-eight percent in 2012 the Greek parliament started to form some radical liberal and conservative parties that both had hopes of reversing the setback. As time went on, the Greek parliament passed a budget to try to secure bailout loans coming from the EU and IMF. This is just one of the many attempts to stop reduce the inevitable by raising taxes and pension cuts once again.
2013 was a better year for Greek parliament. After weeding out some legislators of a far right party, The Golden Dawn, who were criminally involved in money laundering among other crimes. The Greek legislature passed a budget for 2014 that the Prime Minister called a path to exiting the bailout. In April of 2014, the government raises nearly four billion dollars from world financial markets as a part of a sale of government bonds. Many called this an important step in economic recovery.
The next month, the radical leftist group, Syriza, wins European election by twenty-six percent of the vote. After the party takes control, they get one of their own into the Prime Minister’s position in January of 2015. One of the first actions the party takes after winning the Prime Minister, they extend the Greek Bailout and drop anti-austerity policies and undergo a eurozone approved reform program. In June, banks begin to close and emergency funding from the European Central Bank ends. Voters also reject an EU bailout in July.
Recently, Greece has made an agreement with its creditors to a third bailout. This agreement includes spending cuts to avoid bankruptcy. They have also exited the eurozone. The future of Greece is dependent on the economic strength of others in the European Union. Only time will tell if Greece will survive this unfortunate series of events.
Joseph Lowe
Sources:
http://www.bbc.com/news/world-europe-17373216
http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0
http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html
http://www.economist.com/node/21536871