In this podcast we have discussed the reasons of Greece Crisis and steps Greece government has taken to handle the Crisis situation. Alongside Greece there are some more nation who are not in the financially stable condition, like Spain, Portugal, Ireland etc. All this countries are under Euro-Zone, so it’s also called Euro-Crisis.
Topic in Short: Euro Zone was established in 1999, when Euro currency was born. Countries which uses Euro comes under Euro-Zone. There are certain parameters to qualify for Euro-Zone membership, which Greece qualified in 2000 and became a member of since Jan 1st 2001.
In early twentyfirst century Greece was one of the fastest growing nations. If you have listen to our podcast on Zimbabwe hyperinflation, you will know that how country manages their deficit. If you haven’t listened to that, please listen to that podcast first. After joining Euro-Zone borrowing money became easier for Greece and government started borrowing more money for their big development and employment projects.
After the financial crisis in 2007-08 borrowing money became difficult for Greece, that’s why it is known as “Greece Debt Crisis”. Complete Euro-Zone were impacted due to that, Greece worked with European Central bank and other Euro-Zone countries to handle this situation. In the audio we have discussed in detail about the Crisis situation and steps taken after that.