Greek government debt crisis
2010–present government debt crisis
Main article: Greek government debt crisis
Greek government debt levels between 1999 and 2010.
By the end of 2009, as a result of a combination of international and local factors (respectively, the world financial crisis and uncontrolled government spending), the Greek economy faced its most-severe crisis since the restoration of democracy in 1974 as the Greek government revised its deficit from a prediction of 3.7% in early 2009 and 6% in September 2009, to 12.7% of gross domestic product (GDP).[64][65]
In early 2010, it was revealed that successive Greek governments had been found to have consistently and deliberately misreported the country's official economic statistics to keep within the monetary union guidelines.[66][67] This had enabled Greek governments to spend beyond their means, while hiding the actual deficit from the EU overseers.[68]
In May 2010, the Greek government deficit was again revised and estimated to be 13.6%[69] for the year, which was one of the highest in the world relative to GDP.[70] Total public debt was forecast, according to some estimates, to hit 120% of GDP during 2010,[71] one of the highest rates in the world.
As a consequence, there was a crisis in international confidence in Greece's ability to repay its sovereign debt. In order to avert such a default, in May 2010 the other Eurozone countries, and the IMF, agreed to a rescue package which involved giving Greece an immediate €45 billion in bail-out loans, with more funds to follow, totaling €110 billion.[72][73] In order to secure the funding, Greece was required to adopt harsh austerity measures to bring its deficit under control.[74] Their implementation will be monitored and evaluated by the European Commission, the European Central Bank and the IMF.[75][76]
On 15 November 2010 the EU's statistics body Eurostat revised the public finance and debt figure for Greece following an excessive deficit procedure methodological mission
Main article: Greek government debt crisis
Greek government debt levels between 1999 and 2010.
By the end of 2009, as a result of a combination of international and local factors (respectively, the world financial crisis and uncontrolled government spending), the Greek economy faced its most-severe crisis since the restoration of democracy in 1974 as the Greek government revised its deficit from a prediction of 3.7% in early 2009 and 6% in September 2009, to 12.7% of gross domestic product (GDP).[64][65]
In early 2010, it was revealed that successive Greek governments had been found to have consistently and deliberately misreported the country's official economic statistics to keep within the monetary union guidelines.[66][67] This had enabled Greek governments to spend beyond their means, while hiding the actual deficit from the EU overseers.[68]
In May 2010, the Greek government deficit was again revised and estimated to be 13.6%[69] for the year, which was one of the highest in the world relative to GDP.[70] Total public debt was forecast, according to some estimates, to hit 120% of GDP during 2010,[71] one of the highest rates in the world.
As a consequence, there was a crisis in international confidence in Greece's ability to repay its sovereign debt. In order to avert such a default, in May 2010 the other Eurozone countries, and the IMF, agreed to a rescue package which involved giving Greece an immediate €45 billion in bail-out loans, with more funds to follow, totaling €110 billion.[72][73] In order to secure the funding, Greece was required to adopt harsh austerity measures to bring its deficit under control.[74] Their implementation will be monitored and evaluated by the European Commission, the European Central Bank and the IMF.[75][76]
On 15 November 2010 the EU's statistics body Eurostat revised the public finance and debt figure for Greece following an excessive deficit procedure methodological mission