The Greek Crisis

Business | May 11, 2010 | Share

Greece’s financial crisis is a little unexpected considering its illustrious reputation of being one of the strongest economies with 16 million tourists and world’s largest shipping industry.

It was the last country one could imagine to go through such a turmoil. However, given the global financial crisis and considering that huge amounts of reek debt lying with the European investment banks that went bankrupt, and the 2009 elections that led to uncontrolled spending,Greece seems to have become a new victim to this ever expanding crisis. The recent Greek bailout has led to various speculations regarding the current economic crisis Greece is facing. The economic turmoil has forced Greece to tumble upon a situation where they have to fall back upon the IMF, the European Commission and the European Central Bank to help them survive through the worst financial meltdown ever. Recently, Greece and the three funding groups agreed upon a deal worth 95 billion which seemed to be the only way out to save Greece from an economic crumble. The three year package deal which was finalized after intense discussions over months was finally concluded with 80 billion being given by 15 euro countries while 30 billion being given by the IMF over the next three years.

It seems that the attempt to rescue Greece from the economic overhaul will directly affect the public as well as the private segments with the government slashing the budget deficit, cutting down the spending capacity and at the same time increasing the retirement age. The prime minister apologized to his fellow citizens saying that sacrifice was required by the people as this is the only way to save the country. With the new world order slowly coming into place, the government seems to be measuring its steps carefully where the people of the country have to face the burden of paying for other peoples mistakes. It is but obvious that the cuts that have been implemented over the deal will eventually lead to the uplift of the country while the public are made to cope up with everything off the streets. It is a common fear that these cuts might just worsen the current state of recession and send the country through a major economic downfall. While the intentions of the government might be noble and aimed towards the stabilization of the economy, they have failed to realise the amount of hardships the people have to face due to the tremendous austerity factors that has already started to cripple the country.

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