“Greece is a crisis for all of Europe”

All of Europe is watching Greece, and waiting to see whether the government can bring
this economic crisis under control. Even with wage cuts, higher taxes and pension reform,
it may now be too late to avert some sort of a bailout for Greece. There is a serious doubt
that the country will be able to payoff its debt without helping from outside world.
European other countries are saying that, it is Europe’s own problem, they should solve
this problem. But how EU other countries will help Greece, this is the burning question.

The economy of Greece is the twenty-seventh largest economy in the world by GDP and
thirty-third by purchasing power parity. The Greek economy is a developed economy and
it is the twenty-forth globalized country in the world which is classified as a high income
economy. However, the Greek economy is also facing some problems, like
unemployment, government inefficiency and widespread corruption. And in February
2010 Greece experienced a deficit of 12.7% of its current GDP. This rising debt caused
an economic crisis for the country. But at the same time question arises that many
countries, like Japan has debt worth 200% of its economy but there is no crisis in Japan.
The main reason is that it has great access to its lending market, Japanese own bond
market. But Greece has already a great burden to its bondholders. There is a fear that, this
crisis will spread throughout the Europe. So some other European countries, like
Portugal, Spain, and even Italy are next in the firing line. And now EU countries are
concerning each other to help Greece. Some economists think that, there is only two
ways, that Greece can recover their crisis. First one is assistance from fellow EU
members and second one is from the IMF. But the EU members also said that they will
only go to the IMF as a last resort because they want to show that, Europeans can deal
and solve their own problems. So in recent days, EU leaders are spending a considerable
time for finding out the solution of this crisis.

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Greece has a long history of wars. So with such a history, it is no surprise that Greece still
spend a heavy budget on its defense. Greece’s military spending is 4.3% of GDP which is
higher than other European countries. So it is a big issue here, whether Greece can
continue their heavy spending on defense in such an economic condition.

Sources:
Main Article: Aljazeera.net
Support: Eurointelligence.com, Skynews.com, Wikipedia®, Google.

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