Greece: Causes And Impact Of Globalization In Greece

Since its introduction to the European Union Greece has struggled as a nation trapped in its historical past. Greece has been greatly effected by globalization and is struggling economically to this day being held together by the support of other European Union countries for the benefit of the global economy. The stabilization of the Grecian economy has been of high concern for many years as Greece’s economic foundation seems to continue crumbling beneath the sheer weight of debt. The modern globalized world makes it much easier for nations to reach out to help Greece, but it begs the question of if Greece would even be in such dire circumstances if globalization was not such a large factor. Greece has been in financial decay for decades

The movement of capital from the European core countries like Germany and France to the peripheral countries such as Greece began to subside. In 2010 the Greek Ministry of Finance published the Stability and Growth Program 2010 which listed GDP growth rates, government deficit, government debt level, budget compliance, and statistical credibility as the five main causes of the government-debt crisis plaguing Greece today, (…). The Greek economy was one of the fastest growing in Europe up to the time of the Great Recession. At the time of the original introduction of the euro in the years ranging from 2000 to 2007 the economy grew at around 4.2% annually. Greece faces lots of issues in its attempts to regain control of the crisis and their shattered economy and each year the crisis deepens and the international community keeps a watchful eye on the nation teetering on the edge of

For about a decade the tax income has been below the expected level. In one year alone it was estimated the total number of Greek tax evasion was over 20 billion U.S. dollars. Because of this, Greece was ranked on Transparency International 's Corruption Perception Index and labeled Greece as the most corrupt nation in the European Union. Enormous amounts of misreported and unreported debts also had a large role to play in the corruption rating as it was discovered that many transactions made were viewed as a “swapping of credits” and therefore not labeled as debt. It was also later discovered that the Greek government was paying many banks such as Goldman Sachs hundreds of millions of millions of dollars for arranging exchanges that hid the true level of Greek borrowing. “Most notably there were cross currency swaps wherein Goldman Sachs made billions worth of Greek debt and loans virtually disappear by converting the currency to yen and dollars at a fictional exchange rate hiding the true extent of Greek loans” (Bazil 2010). The purpose of these transactions was to hide the Greek government’s debt from the European Union while steadily spending more and more of their