First, Greece is in so much debt that it would take years to dig themselves out. The current level of debt in Greece is a staggering 178% percent. Greece couldnt dig themselves out on their own, so they set up a Eurogroup payment plan. The payment plan is a debt reconstruction plan. Including a ten-year loan maturity and a ten-year referral for repaying them and includes a high-interest rate. Right now, Greece is under a lot of debt but Im hoping in 10 years they will finally
be digging themselves out of the hole.
Now, you may be wondering why did this all happen first of all? Well, you see in 2001, Greece’s economy was flagged for various amounts of reasons. But one of the main reasons was soaring inflation rates that Greece couldn’t handle anymore. High fiscal and trade deficits that were a high impact around 2001. Low growth rates, there was no growth in the economy. People couldn’t get jobs and people were beginning to suffer. And lastly, several exchange rate crisis that no one wanted to talk about
yet. This was the year that has all led about to now.
Another issue that Greece faces is tax evasion. The country of Greece has struggled to collect taxes from everyone especially the wealthy. Now, youre thinking well shouldnt the wealthy people in Greece be trying to help?! Aren’t they in a terrible economic fiscal crisis? They are, people are just stingy. And because of that, Greece’s national debt is 177% percent. Greece says itself that they should be targeting and trying to get the wealthy people to pay more in taxes a year. But it has been a
struggle that they still are trying to work on.
Another reason is, younger people in Greece are suffering the most. Nobody wants to retire yet! Which leaves them in a bunch. In 2013, Greeces retirement age was raised significantly higher. It was raised by years to 67. Citizens in Greece dont want to run out of money so theyre retiring a lot later in life. Which is also a huge economic issue because if they dont retire there will be no room for younger people to start. Which leaves younger people without a job, even if they are college educated.
They say in Greece the average man retires at 63 and the average woman in Greece retires at 59. Greece states that the youngest someone can retire is 43, and that’s with only special benefits. The only people that can retire as young as 43 is a young mother with young children who if they agreed to retire young, they would have a reduced pension. Everything comes with a price.
Another thing that has suffered a lot in Greece’s economic system is benefits. It used to be when someone passed away in Greece, the child of the person most of the time would be a daughter who was unmarried would still get their parents pension to help them economically. Some people also received bonuses for being a good employee, like always showing up on time and picking up extra shifts. Unfortunately, since the financial crisis, all of those perks have completely stopped. “These were bizarre
bonuses with bizarre names and misnomers, not because people regularly attended work,” Tsoukas said. “It was a cheap way to give people more money without necessarily encumbering itself with paying higher pensions.” -Haridimos Tsoukas
A citizen in Greece named Apostolis, who is 39, recently told ABC News that he works in an organics store in Athens, Greece. He said “It’s not too serious. First of all, I could go a bit earlier in the evening and go to the beach to surf. Secondly, I will have a ready excuse not to pay electricity and water bills that have just arrived home.” The citizen was concerned that his boss couldnt afford to keep him around anymore because his boss couldn’t afford it. This is a huge economic issue that we
need to solve. First, it starts out you go without one meal, then it leads to you going hungry because you cannot find work, and you cannot afford any food. The unemployment rate in Greece right now is a staggering 25.6% percent. Greece is the highest unemployment rate in all of Europe. The highest it’s ever been.
I feel like the unemployment and financial crisis in Greece would get significantly better if we started taxing the wealthy a lot more. They have enough money. Also, we cut the messy proposals that have failed as soon as they were passed and we cut the insignificant funds that werent supposed to be used in the first place. I feel like that would be a great start to rebuilding Greece’s economic system and helping their people become more financially set. Most citizens in Greece cannot get an American
Visa. They cannot move for a better life. And I would hate if I was stuck in an economic crisis in my country and had absolutely nowhere to go and nothing to eat.
The overall score for Greece is 57.7% percent. The worlds world rank is 106% percent. But over the past years, Greeces economy has improved a little from when it took a massive crap on their Greek government. Greece has improved in financial freedom and fiscal health moving towards great progress in judicial progressiveness. Greece is, in fact, ranked 43 among the 44 countries in Europe. But what that being said, Greece is also significantly below world and regional averages. Greece is actually
making good progress to try to regrow their economy and have more stability but sadly is it their GDP who keeps dragging them down. Also, their job growth and debt keep bringing them down as well.
Back in history, Greece was a part of the Ottoman Empire since 1980 when Greece decided to leave and join Nato (The North Atlantic Treaty Organization) in 1952. Greece also joined the European Union in 1980 and ended up entering the eurozone in 2002. One good thing that Greece has done over recent years is they have recognized that they are in a financial crisis as a country, and they adapted the eight-year bailout program on August 2018 when Greece contributed to a 370 billion dollar international
rescue program designed to help them with their economic issues and deeply unpopular measures. They are completely changing things for the better, and so far the program has been making progress for the better and not the worse.
One of the significant important reasons why Greece is in such havoc is also because of tax rates. The top personal income tax is 42 percent. The overall tax burden equals 38.6 percent of total income. Right now Greeces tax burden is 59.1 percent. Which means that workers are only getting a little under half of what they make. That to me is not fair whatsoever. As Greece digs themselves out of this recession.
Greece is so sad right now that even tourists are limiting themselves from going to places when they go to Greece. Apparently right now, the islands are the only way to go to Greece. No one is going to Athens, Greece anymore because the economy is so bad over there and there is pollution and everything. What once used to be a beautiful city is now showered in havoc.
Greeces Unemployment rate has raised from 18.4 to 18.5 on January 2019. March 2018 of last year, Greeces unemployment rate was at a staggering all-time high of 20.6 percent. As the year goes by the unemployment rate seems to be getting better and going down but it is still a huge issue. For men, the job rate was said to be around (14.5 -16.5 percent). Unfortunately, the high unemployment rate was significantly higher for women at a (23.6 – 25.6 percent). Unfortunately, women have to suffer more
because there at home taking care of the kids and the men are out begging for a job that will keep them and their families alive. Greeces lowest unemployment rate from city to city is the city of Crete who only had (12.4 percent). Greece’s highest unemployment rate was in the city of Epirus-Western Macedonia which was at (21.4 percent). Greece’s unemployment rates are still fluctuating but I think we’re on a better track than we were 10 years ago.