In 2015, Greece's debt had reached 323 billion euro—the highest in modern history. With debt amounting to 177 percent of its GDP, Greece's rating was downgraded. Not only Greece but other highly indebted countries such as Ireland, Portugal, and Spain were under scrutiny. Since then, the EU's economy has gone into crisis. The EU and IMF agreed to bailout packages for Greece, Ireland, and Portugal. In February 2011, euro zone finance ministers set up a permanent bailout fund, called the European Stability Mechanism. In mid-2011, talk abounds that Greece would be forced to be the first country leaving the euro zone although this speculation was denied. The EU's private sector shrank for the first time in two years; the euro continued to fall against the U.S. dollar; and the euro was seen as a "burning building with no exits". Some economists and politicians have forecast the demise of the euro. The Greek crisis has exposed fault lines in the single currency project since its introduction in 1999. Do you think the advantages of the single currency decision outweigh the disadvantages to the area's economy? Why or why not? What are your suggestions to overcome crises such as experienced by the eurozone.
In 2015, Greece's debt had reached 323 billion euro—the highest in modern history. With debt amounting to 177 percent of its GDP, Greece's rating was downgraded. Not only Greece but other highly indebted countries such as Ireland, Portugal, and Spain were under scrutiny. Since then, the EU's economy has gone into crisis. The EU and IMF agreed to bailout packages for Greece, Ireland, and Portugal. In February 2011, euro zone finance ministers set up a permanent bailout fund, called the European Stability Mechanism. In mid-2011, talk abounds that Greece would be forced to be the first country leaving the euro zone although this speculation was denied. The EU's private sector shrank for the first time in two years; the euro continued to fall against the U.S. dollar; and the euro was seen as a "burning building with no exits". Some economists and politicians have forecast the demise of the euro. The Greek crisis has exposed fault lines in the single currency project since its introduction in 1999. Do you think the advantages of the single currency decision outweigh the disadvantages to the area's economy? Why or why not? What are your suggestions to overcome crises such as experienced by the eurozone.
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