Gr“Exit”- The Economic Troubles of Greece
Greece has been in sovereign debt crisis for a long time now. Greece has an ever increasing debt, a struggling economy and large scale unemployment. The GDP growth rate is just above zero percentage and the unemployment rate in Greece is more than 25%. Greece has a major debt crisis and has already been given two bailout packages by Europe. Every time European leaders agree along with the ECB, EC and IMF to a bailout package, there are severe austerity and reform measures that the Greek people have to agree to in order to get the bailout. Greece is in need of a third bailout package from Europe but the Greek people were severely opposed to the terms of the third bailout package by Europe. A Referendum on the terms of the bailout package was conducted for the Greek people who overwhelming rejected the terms of the bailout package after which renegotiations between Greece and Europe commenced once again. The following are some of the facts of the Greek Debt Crisis in 2015 and about a fear of Greece defaulting on its creditors and exiting the European Union:
Economic Troubles of Greece-2015
• Greece has already missed a payment to the IMF at the end of June, 2015. There is a panic in the Greek banks as there have been long lines to withdraw cash from Greek banks by Greeks over a fear of a default on its creditors by Greece and a potential exit of Greece from EU. Greek Banks have been closed for many days over the last month and only a few people are being allowed limited cash withdrawals.
• On 5th July the bailout referendum was held in Greece where the terms of the bailout were rejected by the Greek people. Greek leaders have now proposed a new bailout plan and have taken this plan for renegotiations with European leaders.
• European Creditors and major European leaders on 13th July approved a third bailout package for Greece with a deal of 86 Billion Euros over the next three years. This deal has to be yet approved by the parliament.
Greece has been in a financial crisis for a long time now. The common people are struggling with a weak economy and severe austerity measures that are hurting the common man. European leaders have to impose these measures for long term solutions to the Greek financial tragedy as people from rest of Europe who are potentially giving money to Greece for the bailout expect it from their leaders. Hopefully there is a long term solution to the Greek debt crisis.