The article is analysis of whether or not Greece will still
be in European Union due to their downturn economy that has been in a recession
for the past five years. The Greek banks have borrowed 43 billion euro of
emergency funds from the Greece Central Bank. Credit is in short supply so
banks had to decrease the amount of loans which has increased the price to
obtain loans. At the end of 2011, the IMF released a report stating that a “50%
write down on private-sector bonds… together with €130 billion of extra
official financing at low interest rates would give Greece a decent chance of
getting its public debts down to 120% of GDP by 2020”. The unemployment rate has risen to 18%. Greece has a deficit of 10% GDP which is a
concern for a country that has so much “slack” and consumes more than it
produces.
The uncertain future of the Greek economy has lead to few
investors or businesses to make long term commitments in Greece. Greece’s
future will be determined next year once its place in the euro is confirmed. It
also depends on the IMF’s agreement for a new support package which they would
only agree to if they think Greece’s “public finances are on a sustainable path.”
One suggestion for the Greek economy is to shutdown “underutilized”
public entities. Another suggestion is to fix the corruption of the tax system
by outsourcing the job to “foreign tax officials or private-sector tax
consultancy”. In order to stay in the euro they have to
convince the institutions or countries that are going to loan them money that
they are not go to throw their money away.
3 comments:
The Greek economy has been this way ever since the Olympics there. In my opinion we as a world society should have made sure they were able to support that before we gave them the Olympics. Ever since then unemployment has been steadily rising, and their GDP has been on a serious downturn
I don't know if I agree with the idea that the Olympics is to blame for the Greek economic problems. While hosting the Olympics does cost a society a substantial amount of money, it can also serve to bring a country to more world prominence in business. That is what Brazil, as a developing nation, is attempting to do now. With the right circumstances and organization, I feel that the Olympics can help a nation economically. I don't think the International Olympic Committee should be blamed.
I agree with Stephanie. I think that large international sporting events should be considered a blessing for the countries hosting them. Events like the Olympics/ World cup bring millions of tourist dollars into counties.
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