Tuesday, November 13, 2012
Greece and the EU: Battle for the (third) bailout
http://www.economist.com/blogs/charlemagne/2012/11/greece-and-eu Due 19 November 2012. What problems in Greece have led to a bailout by the EU? Why is the EU's anger increasing? What solutions do you propose?
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The problems in Greece which have led to the bailout by the EU are that Greece is in a recession and are delaying the payment to other countries and resisting payment and asking for more time. Not to mention the fact that Greece has to refinance €5 billion worth of T-bills falling due on November 16th, but the ECB will not accept more than about €3.5 billion worth of them as collateral under the current ceiling. The debt in Greece also poses as a main problem to the EU and its finance ministers. Other EU countries are getting increasingly angry with Greece because they do not want to continuously be lending billions of euros to Greece to pull them out of the debt that they are in for any longer. Also, they are getting increasingly angry at the fact that the money that they have previously been lending to Greece may in fact be lost forever. I think that the Greek government should take a little more responsibility for their actions to the point where they are continuing to balance their budget and decrease spending. Also, I think that Greece should significantly, only for a short time, raise taxes to have increased revenue to pay back the debt. I am aware that Greece is part of the EU and is reliant to some extent on other countries to help, however this should stop at a point. It shouldn't always be Germany and other creditors’ responsibility to bailout Greece whenever something goes wrong economically for them. This can lead to other countries in the EU to suffer the way that Greece is suffering.
ReplyDeleteGreece is currently in a recession, and the EU has bailed them out because they did not cut their budget enough, and it has not reached its fiscal target. Thus, Greece needs more time, and the EU decided to give them 2 more years. The EU's anger is increasing because they continue to lend them money, but nothing changes. Greece's economy does not get better, regardless of how much money they are loaned. Also, their poor economy is dragging down other Eu countries, and causing political issues over the loans. I order for Greece's economy to get any better, I think they should continue to cut spending, and balancing the budget. Also, they should directly follow any orders given by the EU commission, regarding financial issues.
ReplyDeleteThe bailout by the EU was caused by the many problems in Greece, such as their severe recession, failure to cut their budget, and their delaying payments to other countries. Due to this and the fact that they don’t want to keep lending billions of euros to save Greece from its debt, the EU has been getting increasingly angry. Furthermore, the money being lent has done no good and just causes more tension in the other EU countries. I would propose that Greece, instead of asking for money, should cut their government spending and try to balance their budget. They should also try to create more employment opportunities by doing infrastructure work, resulting in more employed people, or think about raising taxes in the short run on their richest citizens.
ReplyDeleteThe EU bailout was caused by Greece's inability to repay their debts to other European nations, as well as their inability to effectively cut their budget, although they have shown to be willing to make cuts that are necessary. The EU is justified in their increasing anger because they are being harmed by its irresponsibility, in the sense of losing money in the form of a €32.6 billion bailout. I believe that the Greek government must come to a decision regarding their budget as soon as possible, and end delay of the meetings set to discuss the budget. If the situation does not work itself out in that regard, then the Eurozone needs to crack down on Greece, and stop giving Greece second chances. If they make a final deadline for budget resolution, then Greece will be hard-pressed to arrive at a budget, and they will finally solve that issue.
ReplyDeleteThe problems in Greece such as not being able to pay their debts and not being able to cut their budget effectively have led to a bailout by the EU. The anger of the EU is increasing because they don't want to keep lending billions of dollars for Greece to pay off their debts. I believe all the countries should get together and gather ideas because eventually all the countries will go down the toilet.
ReplyDeleteDue to Greece's current recession, delaying payments to other countries and failure to cut their budget, the EU has bailed them out. Not only is the EU bailing out Greece, but they are also becoming increasingly frustrated because they are taking a loss due to Greece's irresponsibility in taking care of itself economically. By lending billions of dollars to Greece, the EU is digging a hole for themselves while trying to rescue a member. I propose that the budget be finalized in order to prevent more losses. Also, the EU should cease giving Greece second chances. It is because of these opportunities that Greece is in a bigger recession than it was and is in its critical state. The EU should take control of Greece, seeing as how Greece is not currently capable of doing so itself.
ReplyDeleteThe EU bailout of Greece was caused by Greece's "Olympian size" debt that it owes and its inability to pay for it or even effectively cut its debt. No matter how much money is lent to Greece they fail cut their budget enough to make a difference in the economy. Most members of the EU have become increasingly angered with Greece because they are losing money from bailing out Greece for about 30 billion Euros in all. I believe that the Greek government should cut their budget more efficiently and stop asking for more and more money. This will also stop the delays in the Economy. Also the EU needs to stop lending Greece such sizable amounts of money so they can learn how to cut their budget more effectively and also will stop the anger among the members of the EU.
ReplyDeleteJaime Caldaro
ReplyDeleteThe bailout by the EU was caused by the many problems in Greece, such as their recession, poor budget cuts, and debts to other countries. The EU doesn’t want to keep lending billions of euros to save Greece from its debt. Furthermore, the money being lent has done no good and just causes more tension in the other EU countries. I would propose that Greece, instead of asking for money, should cut their government spending and try to balance their budget.
The EU bailout was caused by different problems in Greece such as the recession, debts, and budget cuts and other various problems. The Eu does not want to keep giving Greece money to save them from going bankrupt as a country and every time the EU gives money to Greece it is ineffective and doesnt make the EU popular with other countries. I believe Greece should stop asking for money because it is not helping and is getting them in a bigger debt and i believe they should balance their spending and budget.
ReplyDeleteMany of the problems were most likely caused by Greek delays and resistance. Greece is asking for tax cuts, extra help for the poor/unemployed, a hold on public sector lay-offs, and more time to cut its deficit. The EU continues to get angry as Greece has failed to meet their fiscal target and the EU feels as if it is becoming useless to continue to lend Greece money. I honestly feel whatever Greece chooses to do to get back on track with their economy, it will still take time and money, two things that could not be on their side for a while.
ReplyDeleteThe problems Greece is facing is their enormous debt and the lack of growth in the economy. EU's anger is increasing because they don't want to keep giving more money to bailout Greece when the loan out money would be lost forever. They don't want to commit more billions of euros. But I think they should just do it. I mean since Greece is spiraling down, it is killing the entire European economy as a whole. Why not let the countries take a short run hit rather than a huge long run hit.
ReplyDeleteGreece has a current recession and is also delaying payments to other countries without cutting their budget. This is why the EU has "bailed them out." The EU is bailing out Greece and in turn are becoming upset because Greece fails to take economic responsibility. The EU is screwing themselves by lending money. In order to help, budgets should be secured to prevent further denting in the resource area and the EU should stop lending Greece a hand. This is exactly why Greece is in way over their heads. The EU should definitely become stricter with Greece.
ReplyDeleteGreece cannot reach its target budget and the detainment is proving to cost other countries more money and sending Greece into even more debt.They need an extension of two more years but that'll mean borrowing 32 billion pounds. Other countries think Greece is maybe taking advantage of the situation and isn't doing all they can to help themselves. The other countries know if they give Greece more money, it'll eventually lead to a loan forgiveness in which all loaned funds will be "lost forever". I think They should do everything they can to help Greece even if that means a loan forgiveness because it'll mean a long term advantage by keeping Greece in the family
ReplyDeleteGreece received a bailout from the EU because of it's recession, failure to cut budget, and overwhelming debt to other nations. The EU is becoming increasingly angry because no matter how many billions they send to Greece, no change is occurring and other countries believe Greece is taking advantage of the money. I believe that Greece needs to work harder to cut spending and balance their budget. However, this might not be enough and loan forgiveness might be necessary as this is holding down the value of their money.
ReplyDeleteThe problems in Greece, including inability to pay debts and not being able to cut their budget effectively, have led to a bailout by the EU. The anger of the EU is increasing because they don't want to keep lending billions of dollars for Greece to pay off their debts. The EU needs to collectively make a plan so they do not all follow in Greece's path.
DeleteGreece is currently in a recession and has been delaying the payment to other countries as well as resisting payment and asking for more time. he EU is bailing out Greece and in turn are becoming upset because Greece fails to take economic responsibility. I would propose that Greece, instead of asking for money, should cut their government spending and try to balance their budget.
ReplyDelete-Jacob HOchman
Greece suffered a serious recession which was sparked by the financial collapse, back in 2007-2008, of the banking system; but the nations recent history of intitlements and promises to the people that were simply irresponsible, served as fuel for the fire that burnt Greece's economy to the ground. This led to the nation bankruptcy, which led to the nations eventual bail-out. The EU has grown increasingly angry with Greece because as it seems, Greece will not be able to pay back its debt. Although the nation has seen a recent up start in its economy, and is projected to start earning more money, the nation is, and will continue to be for the forseable future, fiscally inept to pay back all the money the EU has delt them. The EU members are angry because that mean the country's like Germany will have to accept that are not going to be repaid by Greece, and the money they lent Greece is "lost forever". The EU needs to propose a plan to finally stem the bleeding of Greece economy, because as long as Greece is hurting, the EU as a whole is hurting. They need to do whatever is possible, stricter regulation, more oversight, and all the while improve Greece's fiscal confidance, so its population will begin to put their trust back into Greece and the EU.
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