Greece Economic Crisis

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|GREECE ECONOMIC CRISIS |
|Causes & Implications |
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Contents
1. Introdution 3

2. Few facts about Greece 3

3. Causes 4

4. Pictorial representation of Greece Crisis 7

5. Government Surplus or deficit since 2001 8

6. Long term interest rates 9

Introdution

For years, Greece has been spending money it doesn 't have. The government there took advantage of the economic good-times to borrow money and spend it on pay-rises for public workers and projects such as the 2004 Olympics. It began to run-up a bigger and bigger deficit (the gap between how much a country brings-in from tax, and what it spends). Athens olympics Greece enjoyed high public spending during the boom years, including an expensive Olympics. After the world economy went bad, Greece suffererd. Banks started to view it as a country that might not be able to manage its money. They worried Greece might eventually fail to pay its loans, and even go bankrupt. To cover the risk, banks started charging Greece more to borrow cash - making the problem even worse. Eventually the government there went looking for help.

It is now borrowing 110 billion euros (£95bn) from other EU countries and the International Monetary