Greece's Economy Is Going Under
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An unforgettable vacation on the land of the ancient Olympian Gods, delicious dishes, great traditional music and sunny beaches - this is what used to come to mind when thinking about Greece. For years, this country was the favorite holiday destination for more that 15 million tourists. Mykonos, Santorini, Rhodes, Crete, Corfu or Samos - these are only a few of the paradisaical islands that people chose in order to relax and forget about daily problems.
Tourists no longer consider Greece as a top ten vacation destination. People don't talk about their great experiences on its islands anymore nor do they say much about the traditional food and music. Actually, the only ones talking about Greece these days are the financial analysts. And, as usual, they have nothing good to say.
According to financial analysts, the causes of the Greek economic crisis are various and they go from unrestrained spending and cheap lending to the government's failure to implement financial reforms and great administrative expenses. All of these created a terrible picture: Greece's economy has collapsed and the country is undergoing social and financial turmoil.
Obviously, Greece applied a series of measures such as raising the retirement age, freezing the state pension, cutting public sector pay and applying tough tax evasion regulations. Plus, it will receive some help from the other countries that form the euro zone. All 16 of them have put together a rescue plan for Greece. It will involve a series of bilateral loans from countries inside the common currency area as well as some support from the International Monetary Fund but it will be applied only as a last resort.
What will the effect of such measures be and how long will it take for it to show we can't possibly tell at this moment. One thing is for certain though: if things don't get better and soon, it's only a matter of time all Europeans will feel the effects of the Greek economic crisis. The reason for such a thing to happen is that its financial situation has pushed down the value of the euro against the dollar and therefore threatens to affect the euro zone. Basically, that means that investors planning to invest in euro zone countries such as Italy Portugal or Spain have been scared off because investments here are no longer safe.
Article Source: Articlelogy.com
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