Greece's Road To Default

Greece's Road To Default

Introduction

The Greece is one of the significant locations in the geographic region. The Greece is located in the total area of 131,940 square kilometers. The Greece also has water resources and along with the land. The total area of the water is about 1,140 square kilometers. In the year 1981, the Greece associated with the European Economic Community that is the forerunner of the European Union (EU). In the beginning of the year 1991, the Greece became the important member of the European Union. In order to have the association and to have the membership with that of the EU, the Greece fulfilled all the requirements using the Euro as its currency. The Greece started using the currency of the European Union and this created the positive impact upon the overall economy of the European Union. After some period of time, in the year 2002, the Euro currency went into the circulation in Greece thus replacing the drachma.

The involvement and the inclusion of the Greece in the European Union created great difficulties and the challenges. This included various negotiations and various deals with that of the EU. The number of motions leaded to the default decisions of the Greece. The following section aims at discussing in detail about the Greece's road to the default.

Discussion

When did Greece become a part of EU?

The Greece became the part of the European Union in the year 1981. This was the time when the Greece adopted the deals of the EU. When the Greece joined the EU, this created various challenges for the Greece. Late on, after facing various economic challenges, the Greece expelled out itself from the European Union. The challenges that were faced by the Greece were primarily because of the adoption of the euro currency. The state authorities of the Greece realized that the drawing out of the Greece from euro can further create the economic, political and social issues and all these issues can lead the Greece to have severe downfall in all around the world. Therefore, the Greece made the default in order to free itself from the association of the European Union and to stabilize again its economic and political situation.

Causes of default

There were various reasons that were the cause of the default of the Greece. The most significant cause of the default was the downfall in the economic status of the country. The use of the euro currency affected the economic situation of the country and this enhanced and improved the economic situation of the whole European Union. The change of the currency not only creates the negative impact upon the economic status of the country, but it also adversely affects the political situation of the country. The other major cause of the default of the Greece is the increased European banks violence and bankruptcy that were being carried out in the street of the Athens. The joining of the Greece created the civil war among the two states and ...