Overview Of The Greece Financial Crisis
Greece had budget surpluses from 1960–73, but thereafter it had budget deficits. From 1974–80 the government had budget deficits below 3% of GDP, while 1981–2013 deficits were above 3%
An editorial published by Kathimerini claimed that after the removal of the right-wing military junta in 1974, Greek governments wanted to bring left-leaning Greeks into the economic mainstream and so ran large deficits to finance military expenditures, public sector jobs, pensions and other social benefits.
As a percentage of GDP, Greece had the second-biggest defense spending in NATO, after the US – a large contributor to its ensuing debt.
“From the perspective of Tsipras, when the unavoidable showdown with the European lenders comes, it is conceivable that Germany would keep Greece in the Eurozone, leaving the IMF behind. Inevitably this would take the issue of significant debt relief off the table. Greece would continue to receive bailout funds keeping it afloat, while pretending to follow the prescriptions coming from Brussels. The Greek people, meanwhile, will continue subsisting in a netherworld of stagnation and poverty.”
Economic recovery for Greece is still many years away due to their lack of workforce structure and sizeable nation-wide debts. As of today, Greece’s top industries are tourism and shipping. As the global economy continues to improve, Greece should also see increases in these economic sectors, and hopefully with time, will alleviate the nation’s poverty, as well as their inadequate unemployment rate of 25%.
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