NAME: Milton Yovanny Paez Porras CODE: 2184414

Political Risks in the Greek Government

Today, we see how Greece is suffering an economic and political crisis which creates speculation
on the future of this within the European Union and the political risks evidence of it. Attempts by Prime
Minister Alexis Tsipras to renegotiate with creditors external debt that is affecting the Greek economy,
have not yielded the expected results, so the EU is one of the main affected by the bad decisions made by
previous governments the nation, because as we know Greece since 1981 belongs to this organization;
leaving uncertainty measures which will be taken in this case, if Greece leave the Euro or bow to the
proposal from creditors to manage the economic crisis of the Hellenic country. But the reality is that
foreign debt has, is reportedly the International Monetary Fund; "Unsustainable". (The time, 2015)

The Austerity policies that Prime Minister Alexis Tsipras implemented; It has led to greater
instability among the Greek people, so it has been mass demonstrations against the national government,
which led to that in recent days the prime minister resign and new elections be cited next September.

But the economic problems in Greece are not new, because since the 90s has been presented
fiscal deficit to 13%, while debt and also exceeded 100% of GDP, compared with 115% today. But with
the turn of the century, in 2004, the government of Prime Minister Costas Karamanlis, the crisis worsened
when this began to take action on public spending in the nation, greatly increasing staff of officials and
many of their privileges, "which pushed up the payroll of public employees by 70%, he said Vasilis
Rapanos, chairman of the National Bank of Greece, the country's first commercial entity.”(Ballon, 2014,
p. 1).

In addition, during the two terms of the conservative government of Karamanlis, forgery of
macroeconomic data from the national accounts were performed, which only came to light after being
elected the Socialist candidate George Papandreou, to mandate between the years 2009-2011. He revealed
that the Greek deficit was 12.7% instead of 3.7% as the government of Karamanlis assured.

To all this, we add that there has always been a constant political instability within the
governments of Greece, because of the corruption that occurs in this, also involving other countries in the
European Union. “The fakelaki or sachet, with the Greeks refer to bribes, it is a recurring business in this
country, where the culture of corruption helps companies willing to bribe officials to get concessions
term.” (mourenza. 2015). In Greece corruption it affects not only the political and business elites, but that
is transverse, affecting all social groups

The economic crisis is compounded by a migration crisis due to the growing influx of
undocumented immigrants to the Greek islands. In this regard, the Greek Deputy Minister of
Immigration, Tasia Jristodulopulu argued that "the peak of arrivals while Greece is experiencing could be
due to the creation of a wall in Hungary, which aims to stop the flow of immigrants and refugees trying to
reach northern Europe "(the informant, 2015)
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