Crisis in Greece: causes

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:44

The crisis in Greece that we are seeing today began back in 2010. At the same time, one cannot speak of its isolation. The fact is that the crisis in Greece is one of the most striking components of the debt collapse that erupted in Europe. Why is this country under attack? What are the causes of the crisis in Greece? Consider those of them that are especially discussed in the media.

Intangible reasons

Partly the economic crisis in Greece is due to the fact that this country is the only state in the constitution of which there is a provision for the dominance of the Orthodox Church. And it is no coincidence. The majority of the country's population adheres to the Orthodox faith. That is why Greece for a long time opposed European officials, most of whom demanded restrictions on the influence of Orthodoxy. Brussels proposed to separate the Church from the school and ensure the full status of religious, sexual and ethnic minorities.

For a long time, the Greek and European media have been conducting a campaign aimed at discrediting the Hellenicchurches. At the same time, they accused her of the moral decay of the clergy and non-payment of taxes. Such statements went so far that the Orthodox Church began to be called almost the main culprit of the crisis that broke out in Europe. Based on this, even some major politicians of both Greece and other countries began to demand the separation of the Orthodox Church from the state.

The main target of such propaganda was monasticism. The anti-church campaign widely used the case of financial abuse of hegumen Ephraim from the Vatopedi monastery. Many other less well-known cases have been described.

Tax evasion

According to many media outlets, the economic situation in Greece has worsened due to the fact that the Church does not replenish the country's budget. The purpose of such statements is to direct the people's anger against freeloading churchmen. In response to these allegations, the Holy Synod published its refutation. The Hellenic Orthodox Church issued an appeal in which all taxes paid to the budget were listed in detail. Their total amount in 2011 exceeded the amount of twelve million euros.

The crisis in Greece was a severe test that affected the entire clergy. A little more than half a century ago, the Greek church donated to the state most of its real estate and land. At the same time, an agreement was concluded, according to which the salaries of the clergy were to be paid from the country's budget. However, the Greek government, pursuing a policy of austerity, not only significantlyreduces payments to priests, but also constantly reduces their number. Thus, according to new legislative acts, only one new minister of the church can count on a salary from the state, who has taken the place of ten retired or deceased members of the clergy. This situation was the result of the fact that parishes in remote areas of Greece are experiencing a shortage of priests.

Despite the accusations and the current situation, the Orthodox Church does not leave believers. It provides all possible material assistance to those who have suffered from the economic collapse. The Church has opened many soup kitchens and is helping thousands of families with free food and cash benefits.

Low production level

According to experts, the answer to the question "Why is there a crisis in Greece?" lies in its relations with the European Union. After joining this community, the state began to experience serious problems in the development of its own production base.

Being sovereign, Greece was proud of its own well-developed shipyards. The EU, after its entry into the community, issued various directives that led to a decrease in fishing volumes. The same is true with the cultivation of grapes and in many other sectors of agriculture. And if earlier Greece was engaged in the export of food products, today it is forced to import them.

A similar situation has developed in the industry. Thus, the Greek economy before the EU was supportedthe work of many enterprises. These included several large knitwear factories, which are currently closed. Tourism has also responded to the crisis in Greece. Every day the country loses up to fifty thousand people who want to spend their holidays on the shores of blessed Hellas. It also negatively affects the country's economy.

Besides, having become a member of a united Europe, the Greeks stopped self-sustaining the country, fitting into the system of division of labor that exists within the community. They switched to the construction of a post-industrial economy, in which the service sector occupied a dominant position. At one time, they received praise from European officials for this. At the same time, the EU put Greece in third place in terms of economic development, only Ireland and Luxembourg were ahead of it. Thanks to the ongoing economic policy from 2006 to 2009, the share of the service sector in the country's GDP increased significantly. It rose from 62% to 75%. At the same time, the share of industrial production in the country has sharply decreased. But at that time no one paid much attention to these figures. After all, the bulk of the country's population received good incomes, which were secured by loans.

On what conditions did Greece join the new community? The EU set a condition for her to change the attitude and management of property. The state-controlled strategic enterprises were to be fully privatized in the country.

In 1992, Greece adoptedprivatization law. And already in 2000, twenty-seven large enterprises left the control of the state. These included five major banks. The share of the state in the National Bank also decreased significantly. By 2010, it was only 33%. Further, the building materials and food industry plants, as well as a telecommunications company, were sold. Even the production of the famous Metaxa brand of cognac was transferred to the British company Grand Metropolitan. Greece ceased to engage in maritime transport, which brought significant profits. In this regard, the state began to sell off the ports it has.

Poor country?

Why is Greece in crisis? Some believe that the economic collapse that has erupted is linked to the country's poverty. However, contrary to popular belief, Greece has a rich supply of minerals and a huge potential for the development of tourism and the agricultural sector. The country has everything necessary to independently feed and provide for its population. It is worth saying that today in Greece there are significant volumes of explored minerals. Their development is not carried out only because of the unpatriotic policies that the local government adheres to and because of EU pressure.

Army of civil servants?

Some experts believe that the crisis in Greece arose because of the huge staff of government employees. However, it is not. In terms of the number of civil servants, Greece is on the fourteenth place among the European countries included in the community. Thus, the ratio of such workers to the tot althe number of workers is:

- for Greece - 11.4%;

- for the UK - 17.8%;

- for France - 21.2%;

- for Denmark - 29%;- for Sweden - 30%.

Today, Greece is experiencing a shortage of personnel in various fields, including hospitals. Priests are also classified as civil servants in the country, who, as mentioned above, are also in short supply.

Influx of immigrants

The causes of the crisis in Greece lie in those liberal laws that the country's government adopted in accordance with the directions of the common policy of the European Union. These decisions were taken advantage of by residents of Asian and African states, most of whom are Muslims. Mass landings of immigrants have led to the fact that crime, corruption and the shadow economy have grown significantly in Greece. Significant damage has been done to small businesses, as visiting entrepreneurs do not pay any taxes. Hundreds of millions of euros have been exported from the country every year.

Economy Management

Today, the situation in Greece is such that many decisions in the country are made by creditors. And this is not an exaggeration. Europe openly puts forward various ultimatums to Greece. In a short period of time, the country has almost completely lost its sovereignty, being under the strict control of the IMF, the European Commission and the European Central Bank. This "troika" at one time did not allow a referendum to be held in the country, which would enable the Greeks to express their own attitude towards state austerity measures and make the only right decision. As a result, thousands of peoplewere below the poverty line.

The West puts forward to Greece demands not only economic, but also political concessions. EU officials are in favor of reducing the army, the separation of church and state and ensuring the rights of immigrants who have a non-Orthodox religion. This is open interference in the internal affairs of the country.

Saving Greece

In numerous media, the opinion is being imposed that only the European Union can show a way out of this situation. However, these statements are highly controversial. According to analysts, at a time when the economic crisis in Greece was only gaining momentum, the ratio of its domestic public debt to GDP was at the level of 112%. This figure for many seemed simply monstrous. After the “rescue” measures taken, this figure rose to 150%. If the European Union continues to provide its assistance in the future, the situation may worsen even more. The forecast for the Greek economy, given the reduction of its budget at the request of Brussels, is very deplorable. Athens will not just destroy its economic growth. They will destroy all the prerequisites for him.

In fact, the assistance offered to Greece will not solve its financial problems. She will only preserve them. And this became clear when experts calculated how much Greece's debt would be by 2020. This is an impressive figure, equal to 120% of GDP. It is impossible to return such an amount. It is unrealistic to serve her. As a result, Greece finds itself in a financial hole. For many years shewill be forced to work only to serve this assistance, leaving no hope for a better life for its citizens.

There is an opinion that Europe is not extending a helping hand to Greece at all. Financial support, which is clearly insufficient for this country, will save Eurobanks a headache.

Liability of creditors

The essence of the crisis in Greece lies in the fact that the country found itself in a deplorable situation precisely because of the implementation of the recommendations of the European Union. For a long period, the community imposed new loans on this state. It can be argued that the Greek problem was originally created by the European Union. Prior to EU bailouts, the country's debt to GDP ratio was lower than that of the US. Despite the fact that the state's insolvency became apparent already in 2009, community officials literally imposed 90 billion euro loans on Greece. First of all, it was beneficial to the banks themselves. After all, each given euro brought a considerable income. The Greeks spent loans beyond their means, and the banks made money on it.

EU freeloaders?

One of the reasons for the crisis in Greece, the media called the desire of the country's population to live off the grants. However, all eurobank loans are issued with a certain condition. Financial assistance cannot be used to increase social benefits and pensions. The amounts received should be used only for the creation of infrastructure facilities that are unprofitable and useless. Of course, such loans do not improve the life of the people at all. They are beneficial only to Greek and Europeanfinanciers and officials.

In the media there is information that Europe has forgiven part of Greece's debts. However, it is not. Agreements to write off 50% of loans apply only to private investors. Greece still owes Germany. Those private investors whose debts are written off are the country's banks and pension funds, which will eventually lose half of their assets.

The path to independence

Talks that Greece is leaving the European Union are now becoming particularly relevant. Staying in this zone for the country means continuing the policy of reducing social spending and the need for austerity. The Greek people are tired of such a life, as evidenced by the numerous protests and strikes, as well as those graffiti that are written on the outskirts of cities and towns.

Every day the European Union has less and less desire and finances to lend to this country. Yes, and there are already other candidates for receiving funds. Thus, deindustrialization took place in the EU.

If we assume such a development of events that Greece leaves the European Union, then it will have to return to its currency. And in this lies not only the possibility of issuing money in the required volumes, but also the likelihood of significant inflation. Of course, the standard of living of the Greeks will decrease, but China and Russia will be able to help them.

International financiers, as well as the IMF, who fear for their capital, are against Greece's exit from the European Union. Not satisfied with this course of events and Germany. He threatens, first of all, letshort-lived, but still the fall of the euro. In addition, this event will be a bad example for other members of the community. Following Greece, other countries can “run” out of it.

In such a situation, the EU does not need troubled neighbors (Ukraine) and does not want to maintain tension with Russia, whose economy is integrated with the European one.

Against the sovereignty of Greece - and the US. This country needs a united Europe, which will serve as a market for American goods.