Essay on Current Greece Crisis

The most challenging problem that the world is facing right now is the ongoing crisis
in Greece. Threatening to cast its shadow over the entire world, Greece crisis has
become a major talking point.

It all started way back in 2008 when the world was going through a period of
recession. As the world economies were trying to recover from recession, a news
leaked from Greece that it was understating its account deficit to the world since
years and that it was going through a period of major economic crisis. The debt
burden on Greece has risen to about 177 percent of GDP and the unemployment in
the country to 28%. That sparked a huge negative response from the world mainly
European countries. The other nations stopped lending money to Greece which
further deteriorated the Greece crisis.

To solve the crisis, the so called Troika - European Central Bank, European
Commission and International Monetary Fund tried to put Greece out of crisis by
issuing two bailout packages in 5 years on the condition that Greece would cut
down its expenses. However, the bailout packages were unable to put spark into
Greece economy as the money was used to cut its foreign debts.

As the bailout package failed to infuse strength in Greek markets, it led to

speculation that Greece could ultimately force itself out of Eurozone. It would have
lead to decline in the value of Euro. Moreover, after the fallout, the crisis may reach
out to other nations. These speculations worked to some extent in the favour of
Greece as Eurozone tried to strike down another bailout deal for Greece but
demanding expense cutting from the Nation in result. Greece on the other hand has
refused to cut down its expenses, as was clear by the referendum held in the
country on 5 July that gave a massive No verdict on cutting down of expenses.

But since then, significant process has been made in the matter and on 13 th of July,
2014 a breakthrough has been reached. A bailout package has not yet been
declared but Greece has been understood to cut down some of its expenses. Other
nations meanwhile, will try to seal out the bailout deal through further negotiations
in future.

The clinching of the breakthrough has put a stop to rumours circulating around the
world. It will bring some renewed vigour in world markets which were having some
turbulent time out in the middle. Though the current solution Is temporary truce,
hope is that it will pave way for the final resolvement of Greece Crisis.