The burden of debt in the European Union, especially in Greece and Ireland, is detrimental to the continent's economy and people. Not only is it an issue throughout Europe itself, but it has become a dominant issue in global economics as well. As these European governments struggle to get back on their feet, the fate of the euro is clinging for life. It has become clear of the extremely high deficits, some at over 100% GDP, which are attached to several EU countries. This European crisis is a continuation of the global financial crisis, but also an issue which was brought upon themselves, largely by Greece. The Greek government funding crisis resulted in the crash of one of the fastest growing eurozone economies, ensuing in large amounts of accumulative debt. This then resulted in the spreading of the crisis beyond Greece, to nations such as Ireland, which didn’t have a particularly stable economy from the beginning. In the end, emergency measures were required to take place in the European Union, as the indebted countries could no longer support themselves.
“The Greek economy was one of the fastest growing in the eurozone during the 2000’s, from 2000 to 2007 it grew at an annual rate of 4.2% as foreign capital flooded the economy” (Congressional Research Service). In order to bring more of the left-leaning population into the economic field, the government ran significant deficits in order to finance social spending, such as pensions and public sector jobs. Since this began in the early 1990’s, the debt of Greece has remained above 100% GDP ...
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...ntries, resulting in difficulty to achieve further loans to continue to run their nation. The crash of the Greek economy resulted in large amounts of debt accumulating and a false economy being run. The spread of this crisis to other EU countries such as Ireland resulted in a further indebted Europe, and a difficult situation to recover from. The emergency measures which inevitably were required to take place in turn resulted in the lowering of the country’s debt, but meant that these countries became dependent on organizations such as the European Financial Stability Facility and the International Monetary Fund. This bailout will likely lead to more draconian measures taking place, and many EU countries losing control of its own finances. The future of the euro is at stake, and so is the dignity and prosperity of some of the world’s most formally praised nations.
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