How Will Greece Affect The Euro Zone And World?
Some of the economic changes for Greece are going to be a rise in the retirement age, cutting 401(k) plans and a shortage in the energy market. Greece’s crisis began in 2010 and since then investors have sold their investments with Greece so they will not be held accountable for. The big question is will Greece’s financial problems affect the rest of the world? Some people believe if Greece left the Eurozone that this would be a huge problem that would cause a lot of damage but others believe this would be good for Greece so they can learn to stand on their own and not have to barrow so much from their …show more content…
This is when the international Monetary Fund and Eurozone membership began with the “bailouts” for Greece adding up to the amount of more then 240 billion euros (approx. 264 billion dollars). The conditions of these bailouts were the cuts for Greece including huge budget cuts and large tax increases. (The New York Times) The money barrowed that was supposed to be a bailout was mostly to pay off international loans. Currently Greece is under very strict rules and their relationship with Europe can be easily broken.
In the Article nine things to know about Greece’s economic crisis by Katrina Lamansky, it talks about in July of 2015 after Greece failed to make a payment to the International Monetary Fund Greece’s banks had shut down for three weeks. The people of Greece were not allowed to access their money in their bank accounts. Even when the banks had opened there was still a hold on the money they could withdrawal. Many of the Greeks wanted to exit the Eurozone and return to their old currency. As stated in a previous article, Greece continues to have an unemployment rate of