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GDP
WORKFORCE/LABORFORCE
• 20% - Agriculture With agricultural products such as wheat, corn, barley, sugar beets, olives,
tomatoes, tobacco, potatoes, beef, dairy products and wine
• 59% - Service Sector
• 21% - Industry Food and tobacco processing, Portland, textiles, chemicals, metal products, mining
and petroleum and construction. Greece is one of the poorest countries of the European Union with
the second-to-lowest average income, after Portugal.
Greece announced Greece announced a plan Bondholders finally agreed to a The Bank of Greece predicted the
its budget deficit would to lower its deficit to 3% of haircut, exchanging 77 billion economy would return to growth by
be 12.9% of its GDP GDP in two years. Greece euros in bonds for debt worth the summer. It only shrank 0.2% in
which is more than four attempted to reassure the EU 75% less. n July 15, the Greek 2015, but the Greek banks were still
times the EU's 3% limit. lenders it was fiscally parliament passed the austerity losing money. In 2017 they decided
Rating agencies Fitch, responsible. Just four months measures despite the to cut pensions and borden tax base.
Moody's, lowered later, Greece instead warned August 20, 2018, the bailout
referendum.
Greece's credit ratings. it might default but still the program ended. Most of the
Otherwise, it would not receive
That scared off investors
European Financial Stability the EU loan of 86 billion euros outstanding debt is owed to the EU
and raised the cost of
Facility added 190 billion emergency funding entities
future loans.
euros to the bailout
DOMESTIC CAUSES
GOVERNMENT SPENDING FOCUSED ON EXPENDITURE
Over past six years, while government increased 87 %, revenue only 31,21% leading to Budget deficit. In 2009 expenditure
accounted 50 % of GDP
POPULIST BUT CONTRA PRODUCTIVE POLICY
Over staffing, increasing salary government employee but poor productivity public sector & also welfare pension system is
widely considered as most generous pension system in Europe
FRAUDULENT GOVERNMENT & FISCAL INDISCIPLINE
Accumulated debts, got admitted into the Eurozone and allowed to adopt the euro without it meeting the criterion, namely the
Maastricht convergence criteria ratio of gross government deficit to gross domestic product (GDP) must not exceed 60%.
However, at time of admission, the government deficit was 126.355% the GDP! More than twice the accepted value
TAX EVASION PROBLEMS
The 3 main sources of government revenue are tax revenues, fees and charges, and other receipts. Out of all these, the most
important and significant source of revenue is taxes. However, many Greeks fail to pay their taxes. Loosing 30 Billions Euro
per year
CORRUPTION PROBLEMS
Bribery rife, The Greek population mostly perceives the Greek government as corrupt,78% of Greeks believe that the
government is corrupt, Only 19% noted reduced corruption
INTERNATIONAL CAUSES