For several years now, there has been economic instability in Greece and, as a result, political and social turmoil. The country's high aggregate debt threatens a further decline in production and a possible exit of Greece from the eurozone. The reasons for the crisis phenomena lie in the gross mistakes made by the government. Probably, only urgent comprehensive measures proposed by the European Union can save the country's economy from a global economic collapse.
The preconditions for the crisis in Greece were outlined back in 2009. The economy by that time was already in a deplorable state, and the real crisis broke out in 2010 and continues to this day. The peculiarity of the current situation in this European country is that the current crisis is debt. The size of Greece's public external debt exceeds € 350 billion. For a long time, the country actually lived on credit, without thinking about the consequences. At the same time, there was a significant imbalance in social policy: incredibly high wages with allowances and impressive bonuses, as well as huge unemployment benefits. In other words, the country has long lived beyond its means.
The country was on the brink of default. When the time came to repay debts, the Greek government just threw up its hands. Experts have determined that the country is not able to get out of the debt hole on its own. Greece's partners in the European Union, after calculations and deliberations, decided to write off part of the debt and allocated a new loan to the state so that the country would have the opportunity to make the necessary adjustments to the economic course.
The Greek government was very late in introducing total economy. Salaries fell sharply, mass layoffs began, and a simultaneous decrease in social benefits to the unemployed. Such unpopular measures led to an increase in citizen dissatisfaction with the economic policy of the Greek government. A wave of street riots, protests and strikes swept across the country.
The turmoil in Greece has already negatively affected both the exchange rate of the single European currency against the dollar and the Russian economy, which is very sensitive to fluctuations in the euro exchange rate.
As measures that can lead to a change in the economic situation in the country, experts call the abandonment of closed professions with their privileges, the facilitation of the process of registering companies, and the lifting of restrictions on domestic markets. It is also necessary to open up the public sector to compete with private business and take steps to improve Greece's competitiveness in international markets.
