Presentation on Greece crisis which was the most discussing topic for last 2 years. It's a message for other Government. When Greece Government was unable to decide, that they should left the EURO Group or not and then common people had decided that. It also shows that from where its all started. Hope you will like it.
2. Discussion Topics
INFORMATION
TERM’S
HOW IT IS STARTED
REASONS BEHIND GREECE CRISIS
CAUSES OF FINANCIAL CRISIS
WHAT NEXT
SOLUTIONS
LESSON FOR US
CHETAN CHAUDHARI
3. INFORMATION
It was under slavery for about 400 years under the
Ottoman Empire.
Evolution of state in 20th century:
• 1912-13: Balkan Wars
• 1914-1918: World War I
• 1921: A Greek expedition to Asia Minor
• 1940-1945: World War II.
Population of country is 1.1 crore(2014).
Greece joined the Eurozone in 1981.
CHETAN CHAUDHARI
4. ’TERM S
• Eurozone consist of 19 countries and
Greece is one of them joined in 1981.
• Euro is the common currency for
Eurozone.
• The IMF (International Monetary
Fund) is created in 1944 at the United
Nations .
• IMF Purpose: Promoting global monetary
and exchange stability.
• ECB -European Central Bank
• EC- European Commission
CHETAN CHAUDHARI
5. HOW IT IS STARTED
The Greek Government borrowed money
(loans) at very cheap interest rates to manage the
country’s finances. From 2001 to 2008, it
continued to get funding from EU, borrowing
more than it reported publicly.
During this period, the Greek Government
had mostly utilized these funds on public
spending only (economic reforms were ignored).
During the period 2004 to 2009, the
Government’s primary expenditure increased by
87% against 31% increase of income from
taxation causing huge fiscal imbalances.
After the 2008 Global Financial Crisis, the
Greek Government found it very difficult to get
the new loans. The funds started to dry up.
CHETAN CHAUDHARI
6. Tax evasion: A 2012 study comparing Greek
bank account data with Government Tax Data
found that the true income of the average Greek
person was about 92% higher than the income they
reported to the Government.
Inefficiency: Greece’s social and political set up
also needs to be blamed for the crisis. Greece has a
very low productivity rate. It has a very inefficient
government.
Corruption: Political and social corruption is
very high.
Single currency – The Euro: If Greece was
not part of the Eurozone (EU), it could have printed
the currency notes (Drachma- country’s pre-euro
currency) and allowed its currency to depreciate,
inflation to raise, make the exports competitive.
REASONS BEHIND GREECE CRISIS
CHETAN CHAUDHARI
11. WHAT NEXT
•On 30th
June 2015, Greece failed to make
a scheduled debt repayment of about 1.5
Billon Euros ($1.7 Billion) to the IMF.
•Greeks now face a choice referendum on
5th
July 2015 – either stick with the bailout
offered by troika (IMF-ECB-EC ) and
endure the pain of austerity (or) reject the
terms of the bailout which may lead to
default and possibly, leaving the Euro zone
entirely.
CHETAN CHAUDHARI
12. Raise taxes on fuel, tobacco, and alcohol
Raise the retirement age by 2 years
To control public spending
To cut the fiscal deficit
To remove subsidies
To increase tax collections etc.,
SOLUTIONS
UP
TO
€60
CHETAN CHAUDHARI
13. LESSON FROM GREECE CRISIS
The learning's from Greece’s social and
economic crisis are –
•Do not over leverage
•Spending more than earning is always
dangerous
•Reckless borrowing should be avoided
•Be productive
•Do not falsify any records
•Do not evade taxes
•Live within your means
CHETAN CHAUDHARI