Greece economic crisis and its political implications on the European Union. (c2018)

Abstract

Greece has recorded a peak level of its debts and budget deficits, which are considered to be the highest among the other European Union (EU) member states, making it the main focus of the debt crisis in the region. In addition to that, Greece is the first EU member state to request the assistance of other regional and international bodies, such as the EU and the International Monetary Fund (IMF), in order to help her recover from its financial crisis. Therefore, and in order to reduce the crisis effect, these bodies have joined forces along with the Greek government and decided to impose austerity measures on Greece. This means that investors had to accept the idea that their investments will underpass some financial losses in this phase on the behalf of easing the debt payments over a short period of time and as soon as possible. It is expected a soon bankruptcy of the Greek government, making it, if it happens, the first developed country to face such a situation in half a century. This study focuses on the political origins of the Greek crisis in government overspending due to electoral consideration, the domestic economic trends and its political implications on Greece and the EU. In addition, it focuses on political factors leading to the crisis. Also looking into the political economy and the EU’s ability to continue, and the impact of its austerity measures. This research applies a comparative approach based on existing data.