The Greek Economic Crisis

[Writer's Name]

[Writer's Institution]

The Greek Economic Crisis

Introduction

Greece has probably not been in as testing a situation as it currently is with the current economic crisis plaguing the nation. The economic policies and regulations of the past few decades have all but brought the nation to its knees. Greece is, quite literally, a breath away from declaring bankruptcy. Fortunately, bankruptcy can be avoided assuming the nation brings about the necessary reforms and economic changes. They must be implemented right away and made sure that the newer regulations do not fall victim to corruption or anything of the sort. For this to take place, the nation's representatives must first come to agreement on the matter that change is truly required if the nation is to be saved.

Furthermore, they must also agree on the quality and quantity of changes required. The required consensus is missing. Many are in opposition of the reforms that leaders of Greece have highlighted and believe that if those changes are introduced, the nation will be jeopardizing its sovereignty. Others defend the proposed changes, stating that they are required to steer the nation away from further economic turmoil. What makes matters worse is that the general public is similarly divided. Civilians also have differing opinions as to what needs to be done.

A majority of the media is focusing on questions like whether or not Greece will be able to fight out of the current economic state of the country. Will they be able to pay their debts? Will Greece be forced to exit the euro and whether or not that would be the wisest decision? Will the European Union offer further assistance to Greece? Questions like those mentioned are not helping the nation. All they are doing is creating chaos, worry and unrest. What the media should be doing is trying to come with ideas on how to help the nation. They should be informing the public about the pros and cons of potential changes to the system and must help the leaders make an informed decision regarding the future of the country. It must be understood that drastic changes are the nation's only chance at surviving. Should the proposed reforms fail to be introduced; the nation will have no other option but to default, further worsening the crisis.

On the contrary, if the reforms are successfully introduced, the likelihood that Greece will repay its current debt increases substantially. With gradual payments, Greece will be able to borrow at considerably lower interest rates; primarily because lenders will be reassured that the nation is making an effort to repay the money that has been borrowed (Scarpetta and Tressel, 2002). Furthermore, even if the crisis were to disappear overnight, through some form of a miracle, the reforms would still need to be introduced to ensure that such a situation does not present itself again. With that being said, the purpose of this paper is to take a closer look at the economic crisis in Greece, observing its origins ...