The Effects of Greek financial troubles on the rest of Europe Essay (Essay Sample)

The Effects of Greek financial troubles on the rest of Europe
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The Effects of Greek financial troubles on the rest of Europe
Greek financial troubles have a significant influence on the economic development of the rest of Europe. Therefore, it is important to investigate the historical origins of the Greek crisis and analyze its consequences for the eurozone. According to Panageotou (2017), the starting point of Greek financial troubles was its association with the European Union in 2001. By the early 2000s, the country had a relatively balanced budget (a deficit of about 5%) and an average size of external debt (about 50 billion euros or less than 25% of GDP). High rates for servicing the national debt prevented its increase, and therefore the government attracted foreign loans cautiously (Mavridis, 2018). The beneficial consequences of an association with the EU became gradually apparent both for the political and economic systems and the national economy as a whole. Therefore, Greek political parties agreed on the participation of Greece in the process of European integration. After the entry of Greece into the EU, the rates on Greek debts dropped sharply, and the international loans became available.