What’s Up With Greece?(Part-2)

“ So initially we were at the Greece budget deficit figures in 2009” she said as soon as she hung up the phone.

I was glad that she was highly keen. “ And this is when the ‘Greek-government debt crisis hit’. [A little fact: It was the first crisis to be added to the list of European debt crisis and also Greece is the first developed country to fail to make a loan repayment to IMF]. ” I replied.

I further continued “ The debt figures are €317 billion with the amount being majorly owed to IMF,ECB and EU.

A solution to this was presented by Nobel Prize winning economist Paul Krugman suggesting that the Greek economy can recover from severe recession by exiting the eurozone( often called ‘Grexit in the media) and launching a new national currency, the drachma.

Another solution was that Greece could agree to additional bailout funds and debt relief in exchange for further public pension cuts, privatizing certain government owned businesses, selling government-own assets, raising tax rates and more aggressively collecting taxes. The policies of the bailout were highly stringent.

Greece didn’t come into terms with any of the solutions.”

“Seems like the crisis bungled everything up in Greece.” she replied.

“Yes! They absolutely did. Now coming to the headline you read in your cell phone.In all of this quandary a referendum called the Greek Bailout Referendum,2015 was announced by Prime Minister of Greece Alexis Tsipras to decide whether Greece was to accept the bailout conditions in the country’s government-debt crisis proposed jointly by the EC,ECB and IMF.” I told her.

“Oh! So this is what Greeks voted ‘No’ to.” She exclaimed.

“Yeah! Now you are getting it. Rebuffed by a majority of over 61% to just 39% approving. Hence, the ‘No’ vote winning in all of Greece’s regions.” I added.

I continued “ You know what! The referendum results forced the immediate resignation of New Democracy leader Antonis Samras as party president because of the perceived negative result of the ‘Yes’ choice, to which the conservative party and Samras had committed themselves ebulliently.”

“His Bad.” She replied.

“Hmm.. He’ll be glad to receive your sympathy” I grinned.

“Now what next is Greece Upto?” she asked

(to be contd..)