Premium Essay

Greece and the Economy

In: Science

Submitted By lulifer12
Words 1698
Pages 7
Abstract
Greece is experiencing a budget crisis so severe that the country may lose its footing in the European Union. Athens is reporting a deficit that is four times the EU limit, which means that Greece could be in danger of losing the euro as its national currency.
The government has promised tough austerity measures, but many Greeks say they are in no mood for sacrifice. Farmers are blocking border crossings, highways and major ports to demonstrate their frustration. They say they're desperate. Cheap imports and middlemen's charges are apparently pushing Greek produce out of major markets.
Pavlos Issaris grows potatoes, wheat and corn. He says the cost of doing business is putting him out of business. He and other farmers want the government to provide subsidies to reduce the price of diesel and other necessities. And Issaris says he also wants the government to more aggressively control imports.

Greece and its Economy Problem
The new government of Socialist Prime Minister George Papandreou is resisting subsidies. Athens is trying to reassure its EU partners with a plan that includes tax hikes and sharp cutbacks in the country's enormous public sector.
Nearly 1 in 10 Greeks is employed by the government as a civil servant; that's almost 1 million people. But Papandreou's pledge to trim that number has already triggered protests. Civil servants are planning nationwide strikes this month.
People have a hard time believing that we're actually going to do what we say we are going to do.
- Greek Finance Minister George Papaconstantinou
The government also has drawn criticism from university students who now doubt that there will be enough jobs for them. Angry posters fill the walls of the entry hall at Athens University's economics department. Students there are skeptical that the government will be able to jump-start Greece's economy.
Valia…...

Similar Documents

Free Essay

Greece

...that may be of importance is Greece, which is located in Southern Europe. Greece is one of the most mountainous countries in Europe, consisting of approximately eighty percent mountains and hills. It shares borders with four other countries (Albania, The Republic of Macedonia, Bulgaria, and Turkey), and is also bordered by three seas (Aegean, Mediterranean, and the Ionian). Greece has a total coastline length of 13,676 kilometers, which makes it the eleventh longest in the world. This coastline consists of the mainland as well as approximately 1,400 islands, 227 of which are inhibited. Greece has a fairly large population of almost eleven million people. Majority of the country, roughly 99 percent, speak Greek, while the remaining population speaks English and French. Because of Greece’s location, it faces some significant political and economic disputes between bordering countries. Since there are a vast amount of islands in the seas bordering Greece, it is always facing boundary disputes with neighboring countries. One of the best examples is the constant, ongoing discussion between Greece and Turkey attempting to resolve their complex maritime, air, territorial, and boundary disputes in the Aegean Sea. Another problem that Greece faces because of its location is the mass migration of Albanians into Greece seeking employment. This migration started in the late 1980’s and is still an issue in Greece today. The number of Albanian immigrants in Greece is estimated to be......

Words: 2282 - Pages: 10

Free Essay

Crisis in Greece

...THE FACULTY OF ECONOMICS LJUBLJANA THE CRISIS IN GREECE subject: TAXES MAY 2013 TAXES THE CRISIS IN GREECE author: P.Fux Contents   INTRODUCTION ...................................................................................................................... 3   GENESIS OF THE FINANCIAL CRISIS (USA) ................................................................. 3   THE TIPPING POINT ........................................................................................................... 3   IMPACT OF BANKING CRISIS ON EU - DEVELOPMENT OF FISCAL CRISIS .............. 4   WHAT HAPPENED IN GREECE............................................................................................. 4   DEBT IS HER OLDEST COMPANION ............................................................................... 5   CRISIS HAS SHOWN FIRST EFFECTS.............................................................................. 5   HOW MARKETS SAW GREECE ........................................................................................ 6   GREECE'S PROBLEMS SINCE THE CRISIS HAS ARISEN and BAILOUTS ..................... 7   The huge numbers of Greece's debt in pictures (2012) ...................................................... 9   A FEW WORDS ABOUT GREECE'S RATIOS ..................................................................... 10   THE GOVERNMENT SPENDINGS ..............................................................

Words: 6764 - Pages: 28

Free Essay

Greece

...Greece XXXXXXXXXX XXXXXXXX XXXXXXXX College Professional Studies Abstract Greece is a country of great beauty. It has long been one of the world’s top tourist destinations. Tourism is one of the major industries of the Greek economy; tourism is a strong earner of foreign exchange. The warm climates, the long, scenic Mediterranean coastline, the many significant archaeological and historical sites, the traditional hospitality of Greeks, and improvements in the local infrastructure have continued to attracted visitors (Photius). I have elected to focus on two aspects of the country of Greece for the purpose of this paper. First, I will outline the educational system in Greece. It has an interesting government run structure in which primary and secondary education is mandatory, a total of 9 years. Also, an additional 3 years of education is optional for students who desire to prepare for technical school or higher education in the university system. All education is free in Greece, placing the burden on the taxpayer. I will also discuss Article 16 of the Greek Constitution regarding the government’s stance on higher education and the negative issues surrounding their policy. The second issue I will discuss in this paper is the current economic problems facing Greece. After the 2004 Olympic Games in Greece, there was great hope that would have......

Words: 2352 - Pages: 10

Free Essay

Ancient Greece

...Ancient Greece Paper 1. Introduction to Ancient Greece * What is ancient Greece? * How long did Ancient Greece last? * How did Ancient Greece impact western civilization? 2. Archaic period * Duration of the Archaic period * Characteristics of the Archaic period * Impact of the Archaic period on Greece’s culture 3. Classical Greece * Duration of the Classical period * Characteristics of the Classical period * Impact of the Classical period on Greece’s culture 4. Hellenistic Greece * Duration of the Hellenistic period * Characteristics of the Hellenistic period * Impact of the Hellenistic period on Greece’s culture 5. Roman Greece * Transition to Roman Greece * Characteristics of the period under Roman rule * Impact of the Greek culture on Rome 6. Political structure of Ancient Greece 7. Social structure of Ancient Greece 8. War in Ancient Greece 9. Religion in Ancient Greece 10. Impact of Ancient Greece on today Introduction to Ancient Greece I chose to write about Ancient Greece because my heritage is from that area of the world and that makes it very interesting to me. The period of time that ancient Greece covers spans for about one thousand years and includes several stages of cultural, economic, and political development. This period was also very important because many consider it the time when western culture was born and developed. However, before ancient Greece......

Words: 1761 - Pages: 8

Free Essay

Greece

...Doing Business in Greece Introduction Greece is an extraordinary country rich in ancient civilization, famous for giving birth to democracy! According to (Business culture, 2014) Greece is an open economy that relies heavily on the service sector, while the remaining national output comes from the industry and agricultural sectors. On top of that Greece is still a significant agricultural and fisheries producer for Europe, but the tourist industry will always be the basis of the Greek economy, which Greece ranks 7th in the most visited countries in EU. It is approximately the same size as New York. It is located in southeastern part of Europe, hanging right down by the beautiful Mediterranean Sea, just east of Italy. Greek culture is rich in dramas, rhetoric, music, and philosophy dating back to Greece’s classical era. It is home to the mythological characters and their popular stories world-wide, The Greek Gods and Goddesses that we’ve watch in multiple movies and cartoon shows growing up, originated from this beautiful country. The most recent highlight from Greece is Sparta, the Hollywood movie 300, which showcases the historical connection between Greece and Persia. Greece finally became an independent nation in the 1800’s, joined the European community in 1981, and became a member of the economic/monetary union at the beginning of 2001 before their economic downfall. Demographics As stated in (Konstandaras, 2013) the total population of Greece is around 11......

Words: 1408 - Pages: 6

Premium Essay

Greece

...Introduction Since the 1980s, Greek political battles forced Greece to endure constant transformation of their economic structures. These fluctuations created economic instability due to rapid changes in devaluation and inflation cycles. After successfully joining the Eurozone in 2001, Greece’s economy progressed enormously. However, the Greek government acted irresponsibly with its fiscal policy and debt accumulation. Consequently, the created economic weaknesses became apparent during the 2008 global financial crisis. The Greek sovereign debt crisis has required multiple controversial bailouts. The bailouts that prevented Greece from defaulting, led to two opposing opinions from leaders of the members of the European Union (EU), (1) to support Greece to remain member of the Eurozone and, (2) to pressure Greece to exit the Eurozone. Greek constant economic restructuring Introducing the “populist policies” during election seasons were the core of Greek political parties strategy. Political parties were forced to craft and innovate new economic structures to gain support from the voters. In 1980s, for example, the notion of public protection and equal income redistribution strengthened confidence in Greek’s voters. The massive increase of the public spending (10% increase of the GDP from 1980 to 1990) caused turmoil in Greek economic structures. The newly elected government’s acquisition of Bank of Greece resulted in the Greek government having direct control of the......

Words: 1585 - Pages: 7

Free Essay

Greece

...Aravossitas Wednesday, April 15th 2015 What is Greece?: Significance of Music within the Ancient Greek Culture Abstract: What is Greece? This questions can be answered in a variety of areas. The history of music in Greece plays a significant role in the history of the country. Because music played a integral role in the daily lives of the Ancient Greek citizens, it is evident that music has played a role in shaping the culture into what it is today. We live in a society where we are completely devoted and immersed in music. Whether it be a simple tune we hear on a radio or the hustle of city life, music is all around us. The way we react to music, is very similar to how music was in the ancient Greek times. Music allowed the citizens to express emotion, to worship, to prepare for sporting events, to mourn, to celebrate, and in essence to be happy. Music was their special gift from the gods, and they did everything in their power to make sure the gods understood their appreciation. They honored music and created an artistry that stands as a guiding role in, not only the history of the Greek culture, but also a significant role in the history of music in general. What is Greece? This question can be explored in many different areas. From a political aspect to the beautiful geography, Greece offers a wide range of history and culture that one cannot pass on learning about. The music of Greece is as diverse and celebrated as it’s history.......

Words: 2103 - Pages: 9

Premium Essay

Greece

...globalization goes back all the way through ancient times. They began to spread across Asia in its southwestern sector, northern Africa and then onward to southern Europe. Alexander the Great would be a main reason as to how Greece provided its globalization matters into these other regions. In fact, there are cities named for Alexander in Iraq (Iskandariya), Egypt (Alexandria), and Turkey (Alexandria Troas) (Geo). When it comes to globalization there are many different factors that come into play as to what degree of globalization can occur. For Greece there were many positive factors in play. Physical characteristics such as the topography of the soil were a huge factor. There is also the vast presence of natural elements and the climate that goes along with it. If a country can globalize on what nature gives them on a daily, monthly or yearly basis, there is great reason to globalize into other regions (Iosif and Roido). Apart from the physical characteristics there are the cultural and architectural heritage aspects as well. Greece can fulfill those respective aspects as well, making it a plentiful place to plant the seed of globalization (Iosif and Roido). Greece is known for its plentiful history, and the namesakes to go along with the history itself. Greece and globalization go hand in hand in the means of the history aspect of globalization. The Greek city is influenced both by political social financial systems and by the human factor. This factor is the......

Words: 1320 - Pages: 6

Premium Essay

Greece Crisis

...measures in Greece held another round of strike activity, economic development worse. Until February 2012, Greece, Germany and France and other countries still rely on rescue loans to survive. In addition to Greece, the financial situation of Portugal, Ireland and Spain and other countries also attracted attention from investors, European countries sovereign credit rating was lowered. Greece was just entering the euro zone. According to the provisions of some countries of the European Community signed in 1992 "Maastricht Treaty", the European Economic Monetary Union member states must meet two key standards, namely the budget deficit it can not exceed 3 percent of GDP, the debt ratio below 60% of gross domestic product. However, the accession of Greece just to see yourself far away from these two criteria. This alliance Greece and the euro zone is not a good thing. Especially in the euro began to depreciate as soon as they come out of the time. Then he turned to the Greek American investment bank "Goldman Sachs." Goldman Greece to design a "currency swaps" way for the Greek government to cover up the sum of up to 1 billion euros of public debt, so that Greece in the book in line with the criteria for euro membership. This specific approach is called "financial innovation", the Greek issue a $ 10 billion (or Japanese yen and the Swiss franc) ten to fifteen-year bonds, listed in batches. This debt by the investment bank Goldman Sachs is responsible for US dollar Greece into......

Words: 1771 - Pages: 8

Premium Essay

Greece

...and write as well as to count and draw. Having a physically fit body was important to the Greeks so Greek boys would start Physical Education during elementary. In modern world Education is a little different from ancient Greece but not by much children still are put under guidance by having teachers and still have Gym or Physical Education classes (P.E.). In ancient Greece was the Olympic games which is one of the oldest religious and sport festivals in the world, the games were help in Olympia, Greece and were held to honor the Chief God Zeus and even had ritualistic sacrifices there are some similarities to the games we now know in the modern world Olympic Games instead of brutal fights with bloodshed and loss of life, we still do Sporting games such as distance running, disk throwing, javelin, and wrestling. Gender Roles in ancient Greece were way different back then. Woman and men had their own respective roles in society. The women were supposed to have kids and stay home to take care of the family and household. This isn’t so different from today’s House moms who take care of the family while their husband works, but most women today have respectable careers and some husband even take the role of taking care of the kids and house. In ancient Greece woman didn’t have any rights men had all the power. It took a long while but woman in today’s modern world are well respected and have the same amount of rights as men now, we might even get a female president....

Words: 303 - Pages: 2

Premium Essay

Greece

...Early Greece and All Its Glory Amy Villegas Matthew Geier Strayer University March 4, 2010 Early Greece and All Its Glory Phoenician Alphabet The Greeks adopted the Phoenician alphabet. Just like the Phoenicians the Greek alphabet is written from right to left. The direction of writing later changed to ox-turning. Ox-turning is a written language that is written from right to left and on the next line it continues from left to right and so on. Eventually, the Greek alphabet does change to left to right but that’s during the fifth century. (Bantwal, 2008) Greek Education For Greek children, their education mostly consisted of poetry and song. (Hadas, 1950) Education was more popular among young boys but it was not uncommon for girls. The wealthier children remained in school for ten years. Grammatistes, paidotribes and kitharistes were the teachers who taught the children. Grammatistes taught literature, arithmetic, reading and writing. Paidotribes coached boxing, wrestling, and gymnastics. Kitharistes taught music. At age eighteen, boys would train for the military for two years before further education. (Discovery Channel, n.d) The Illiad and the Odyssey Homer wrote the two most classic poems titled the Illiad and the Odyssey. The Illiad is based on the last six weeks of the Trojan War. The main character of the Illiad is Achilles. Achilles and Agamemnon get in a heated argument and Achilles retracts from the war. The Greeks are losing...

Words: 2234 - Pages: 9

Premium Essay

Bop of Greece

...recovery from the global financial crisis begins, but the global recession endures, some point to the threat of a second wave of the crisis: sovereign debt crises. Greece is currently facing a classic sovereign debt crisis. Greece accumulated high levels of debt during the decade before the crisis, when capital markets were highly liquid. As the crisis has unfolded, and capital markets have become more illiquid, Greece may no longer be able to roll over its maturing debt obligations. Some analysts have discussed the possibility of a Greek default. To avoid such a default, however, the Greek government has introduced a variety of austerity measures and, on April 23, 2010, formally requested financial assistance from the other 15 European Union (EU) member states that use the euro as their national currency (the Euro zone) and the International Monetary Fund (IMF).Greece’s debt crisis has raised a host of questions about the merits of the euro and the prospects for future European integration, with some calling for more integration and others less. Some have also pointed to possible problems associated with a common monetary policy but diverse national fiscal policies. This report provides an overview of the crisis; outlines the major causes of the crisis, focusing on both domestic and international factors; examines how Greece, the Eurozone members, and the IMF have responded to the crisis; and highlights the broader implications of Greece’s debt crisis, . Greece’s Debt......

Words: 6617 - Pages: 27

Premium Essay

Greece in Crisis

...International Political Economy - July 2011 Greece has been experiencing severe fiscal challenges for the past decade. The country’s economic and political situation has reached crisis level thus propelling it into the global lime-light, dominating headlines in print and electronic media. This essay seeks to explain the crisis and explore the implications for Greece, the European Union and the international political economy, should continued assistance not forthcoming. The source of Creek’s debt crisis is both domestic and international. Domestically, analysts point to high government spending, weak revenue collection, and structural rigidities in the economy. This affected the state’s ability to fund government budget and current account deficits, resulting in profound borrowing. As the situation progressed for the worst, the Creek economy relied heavily on international capital markets, which only aided in making the country extremely vulnerable to any shifts in investor confidence. Access to capital at low interest rates after adopting the euro, and weak enforcement of European Union (EU) rules concerning debt and deficit ceilings facilitated Greece’s accumulating high levels of external debt. In October 2009 investors became jittery due to the actions of the newly elected government in revising the estimate of the government budget deficit for 2009 from 6.7% of gross domestic product (GDP) to 12.7% of GDP (Nelson et al., 2010). A few months later, however, in......

Words: 2351 - Pages: 10

Free Essay

Greece

...Working Paper No. 3663 The Greek Crisis: Causes and Consequences Abstract Greece has reached a point where, under any plausible macroeconomic scenario, public debt will continue growing faster than GDP. Fiscal consolidation alone cannot close the solvency gap. A substantial reduction in the stock of debt is needed. Even post-debt restructuring, there is no guarantee that the government will succeed in its dual goal of restoring fiscal solvency and closing the competitiveness gap. Yet we think Greece stands a better chance of accomplishing these goals from inside the EMU rather than outside it. This chapter takes stock of the factors that led to the explosion of public debt, the loss of competitiveness, and the failure of the first EU-IMF programme. We also present our views on the likely debt restructuring (and post-restructuring) scenarios. JEL-Code: E600, F400. Antonio Garcia Pascual Economic Research Barclays Capital 5 The North Colonnade Canary Wharf E14 4BB, London United Kingdom Antonio.GarciaPascual@barcap.com Piero Ghezzi Economic Research Barclays Capital 5 The North Colonnade Canary Wharf E14 4BB, London United Kingdom 1. Introduction By April 2010, Greece had lost market access, as the economy was contracting by 3% in real terms, the fiscal deficit - partly on account of unreported spending reached 15% of GDP, and public debt rose to more than 125% of GDP. How did Greece get to that point? As in other peripheral countries, upon joining the euro......

Words: 5563 - Pages: 23

Premium Essay

Greece Crisis

...REPORT TO NEPHEW The economy of Greece is the 27th largest economy in the world by gross domestic product & thirty third largest by purchasing power parity according to the data given by International Monetary Fund in 2008. But amidst this suddenly you could see news flashing everywhere about the Greece being declared bankrupt & its efforts to cope up with this problem. Now you wonder what is this crisis all about? In other words we can say that Greece had continuously borrowed funds from other countries exceeding its repaying capacity. In the beginning of 2010, it was discovered that since 2001 Greece had paid Goldman Sachs & other banks hundreds of millions of dollars in fees for arranging transactions that will hide the actual level of borrowing. Also, they made unrestrained expenses, provided cheap lending, were unable to recover taxes from its citizens & overspent on state pension plans. The main factor for the crisis is the high number of residents who purposely avoid tax, particularly the wealthy, starving the government of the cash that it needs to provide a sufficient level of public service. Another notable factor is the Greek tendency to be a little over generous with the state pension provisions to the elderly which although is a pleasant gesture in principle, left a large ongoing liability to the taxpayer. The ongoing struggle for the Greek government to......

Words: 1069 - Pages: 5