Submitted by: Submitted by niqualuvs394
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Words: 525
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Category: Literature
Date Submitted: 05/08/2016 04:44 PM
Shaniqua Murray
Global Investment
Due Date: September 16, 2015
The Greece Crisis
Greece’s economy is shrinking, government debt is high, unemployment is above 25%, there have not been any negotiations of a credible bailout, and imposing more austerity is definitely not a feasible solution. For the IMF, European Central Bank, and European Union to bail out Greece for the umpteenth time would only deepened the country’s crisis and might even cause a global effect. The widening abyss between Greece and its lenders, seem to have no great effect in getting Greece out of turmoil. The lack of liquid assets, staggering tourism, and minimal shipping, until the country can produce reforms that they will actually follow, all lenders will be hesitant to lend or give additional aid.
The emergency funds that are suppose to be used to give Greece a little slack to stabilize its finances and boost its economy are being dominantly allocated to paying loans. This is no way to ease the pressure of the state of the country and its citizens. The country needs debt relief. During the recent referendum 60% of the country votes No, rejecting financial assistance from Europe and the International Monetary Fund. Greece Prime Minister hoping the results from the referendum would give him leverage when negotiating with creditors.
Witnessing the past austerity measures, it is safe to say there isn’t any evidence of it improving Greece’s economic status. Austerity would have normally had a somewhat positive impact and assurance in a country’s economy did exactly the opposite in Greece. Given Greece’s economic structure of mainly small business, it has contributed to a negative effect on the economy. The country would not be able to meet demands of exporting goods that could have helped constitute growth. Austerity has proven that it will be detrimental in the near future of the country. The decision to accept more funding from the banks with their given...