Greek Crisis

The Hellenic crisis opportunity for Hellenic to rebirth The dubious distinction of historys first put down sovereign default belongs to Greecethe same nation at the forefront of the servicemans second major financial crisis in five years. The crisis elevated a question Whether the crisis is a tragedy or opportunity for Greek? I believe even Greek have taken measures to reform, this crisis would hold back until Greek governing body come up with solutions which are not created by other countries and foreign institutions to protect their benefits. Trouble in Public finance Greece faced deep economic problems.Most notorious was frequent-sector deficit. (See Exhibit 1) The debt-to-GDP ratio measures a countrys ability to pay off the entire debt with one and only(a) years income, regardless of the nations wealth or total debt outstanding. Exhibit 4 shows the possibility that Greeck default is increasing. Two near outsized component of government expenditure were employee compens ation and pensions. Greek government has taken austerity measures to reduce the deficit and meet the request of the international institutions who provide financial aid to Greece. The weaknesses of the economic modelThe global economic crisis of 2008 has strand the Greek economy with several fundamental weaknesses Reliance on faint money (such(prenominal) as from the stock market or property), as hearty as on over-inflated private consumption, which has in get relied on loans in recent years. The disproportionately central role of construction as the hotheaded force of the economy dating back to the 1960s. Particularly high public debt, which remains undiminished despite the widespread privatisations of the last 20 years. Over-reliance on sectors directly affected by the international crisis, such as tourism and shipping. Excessive dependence on embrocate consumption, an expertness-wasting, pollution-generating energy model and the forecast of high-cost emissions rights from 2012 onwards. Abandonment of mountainous and disadvantaged regions, which represent two thirds of the country, and overcrowding and overuse in the remaining third. An absence of genuine protection of natural resources in sectors such as water, forest land, fisheries resources and the countryside and biodiversity. proposals to exit the crisis A fundamental priority is TO concurrently INVEST IN THE EXIT FROM ALL THREE ASPECTS OF THE CRISIS the economic, the social and the environmental.We condense on three basic priorities in parallel with the efforts for fiscal viability and the champion against corruption and tax evasion Sustainable revitalisation of the countryside, with emphasis in the production of biological agricultural goods, and resurgence of the local and regional train economy, including the abandoned mountainous and disadvantaged areas. Promotion and upgrade of collective goods and serve as compensation for the loss of purchasing power of people, in sight fo r quality of life to become again a right for everyone as a kind of parallel social wage. Urgent turn in the energy sector to eliminate the dependence on oil and lignite, promotion of solutions alternative to car use, but also investments in energy saving and in renewable energy sources, drawn so that they domiciliate additional incomes for the maximum possible number of households. Specific policies having these priorities need to be developed and applied in order to create funds and lock in creative social forces A just tax reform that willing use the taxes as tools for encouragement or not of activities depending on their repercussions on the environment and the society. Measures for transparency and fight against corruption and tax evasion should assume at the re-establishment of a sense of social justice. Reduction of military spend and negotiations withTurkey for even larger mutual reductions. Given the Turkish candidacy for integration into the EU, it is logical to ssu me that the EU should become more involved in the efforts to unthaw Greek-Turkish differences. The promotion of a social and solidarity economy is of central importance to us. The reconnection with the customs duty of the ecology of the poor becomes again particularly relevant. Exhibit 1