The Impact Of The Debt Crisis In Greece

The debt crisis in Greece officially started in 2010; however, it can be argued that this was going to happen two years earlier. When Wall Street imploded because of the recession in the United States, Greece became the center focus of the debt crisis in Europe. To make matters worse, Greece announced one year later that they had a bigger deficit then they had originally thought. This event led to many questions asked on how Greece handles their money. To understand the crisis in Greece, it is essential to return to the year 2001 when the euro was introduced as a common currency in Europe. The Euro effectively increased trade; however labor costs increased therefore making Greek exports less competitive. This resulted in a significant increase …show more content…
A loan default by Greece might have produced a global financial shock. However, this opinion is not shared by everyone and there are people who believe that Europe’s safeguards are enough to prevent the financial damage from spreading. Greece’s possible exit from the European Union might benefit both Greece and its partners. The financial crisis has impacted many facets of society. The educational system in Greece has become one of the most inequitable in the developed world (Pickles). The bailout has forced budget cuts in education, which has forced families to pay for private tutoring in order to pass university entrance exams. As a result of unemployment and loss of salaries, lower and middle class families are deprived of the same educational opportunities that the wealthy can obtain. Some educators warn that the loss of talented students from lower incomes will affect the economic recovery of Greece. The government, given all of its problems, will need to create more economic reforms and abide by the reforms required by the bailout. They have to go down this path mainly because of a massive debt load that they cannot pay until a recovery takes