The Greek Crisis

Image Source - Reddit

The Greek Depression is an overwhelming accumulation of debt of a country whose unconventional spending and major tax evasions led to its position as that of today. The entry of Greece into the Eurozone in 2001 was under lot of speculation because it manipulated its growth rates. Subsequently, after adopting Euro, the GDP tripled because of increase in investments particularly in shipping and tourism.

The financial crisis of 2007-08 took a toll on the country which added to the debts incurred by the 2004 Summer Olympics. Also, widespread tax evasion, corruption and  increased labour costs caused the market to plummet. This increasing trade deficit meant that Greece was consuming more than it produced. Eventually, it defaulted on its loans which brought serious concerns about the crashing economy.

The Hellenic economy has to choose whether to stay in the Eurozone or not. The recent vote on the bailout referendum shows that it may lead to ‘Grexit’. Doubts are on whether the ‘no’ would mean that the country will stay with the currency or  make  further negotiations with its creditors.


- Deepthi Sekaren ( XIME-Bangalore : PGDM 2015-17 )