Current issues in greece

Economists fear that, without further reforms to cut red tape and speed up its courts systems, the Greek economy will struggle to take off. Greece attempted to reassure the EU lenders it was fiscally responsible.

That scared off investors and raised the cost of future loans. Since August, the Greek government has tried to show that austerity is over, by providing additional funds to the lower and middle classes.

Nektarios Drakonakis of Dafni. New Democracy, a conservative right-wing party, has about 37 percent of the support, compared with 26 percent for the ruling and left-leaning Syriza party.

greek debt 2019

Why was the EU so harsh? Dig deeper. That would debase the value of repayments in their own currency.

Current issues in greece 2019

On September 20, Tsipras and the Syriza party won a snap election. This meant that Greece could delay difficult structural reforms that had become necessary and may have been unavoidable if cheap funding had not been available during the s. Some key assets were sold to insiders. The rate of increase is high, however. These reforms were intended to strengthen the Greek government and financial structures. At the same time, it reduced wages to lower the cost of goods and boost exports. Many Greeks continued to withdraw cash from their accounts fearing that capital controls would soon be invoked. The recession worsened and the government continued to dither over bailout program implementation. They helped banks reduce bad debt, opened up the energy and pharmacy markets, and recalculated child benefits.

As a result, Greek debt continued to rise until the crisis erupted in There were three reasons.

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Greece country profile