{"id":38108,"date":"2015-07-17T08:59:45","date_gmt":"2015-07-17T03:29:45","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=38108"},"modified":"2024-04-03T13:19:12","modified_gmt":"2024-04-03T07:49:12","slug":"greek-story-cut-short-the-greece-crisis","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/greek-story-cut-short-the-greece-crisis\/","title":{"rendered":"GREEK STORY CUT SHORT; The Greece Crisis"},"content":{"rendered":"

\"GREEK<\/a><\/p>\n

Recent GREXIT(Greece Exit) issue and economic terms like austerity measures, Eurozone, Greece Debt crisis may sound a little, well, Greek to many!<\/em><\/p>\n

To cut things short, here\u2019s a real short story about how everything eventually lead to miserable condition of Greece today.<\/p>\n

The story starts way back in 2009, when everything wasn\u2019t all right. Greece had national Debt-its expenditure was way more than its revenue: so much that it had to borrow money! Banks charged higher interest rates which led to further debt. This was before Greece joined the Eurozone (monetary union of 19 of the 28 European Union(EU) member states which have adopted euro as common currency<\/em>), it could print its own money earlier which helped it manage National Debt.<\/p>\n

Debt was increasing because pension schemes for retirees and benefits for unemployed cost money without generating any revenues in return<\/strong>; Greece had to pay price for its generosity.<\/strong><\/em><\/p>\n

Greece then joined Eurozone, adopted euro as its currency. As a condition of Eurozone, Greece had to control its expenditure (it was growing beyond control<\/em>).It badly failed in doing so!<\/p>\n

Gradually Greece needed more money, borrowed it incessantly.<\/em><\/p>\n

Eurozone crisis came<\/strong><\/em>. It hit Greece hard. Also, businesses and Greek citizens were evading taxes (tax revenue accounted for half the country\u2019s budget in year 2008-10<\/em>). Revenue turned less and lesser.Without the expenditure not decreasing and revenue going down, it had to, somehow, borrow more money.<\/strong><\/em><\/p>\n

IMF(International Monetary Fund) and ECB(Europe Central bank) turned up for help but with some conditions for Greece<\/p>\n