Greece's Economy Is Going Under
Mykonos, Santorini, Rhodes, Crete, Corfu or Samos - each of these famous Greek islands represents a great holiday destination. Or at least it did up until the international economic crisis affected Greece. What used to be a genuine paradise for those eager to escape the boring and stressful daily activities has turned into the headquarters of social conflicts and financial disaster. The situation is so bad that it is very unlikely for the Olympian Gods to receive a great amount of guest in the immediate future.
Why is that? How is it possible for a prosperous country, with 15 million tourists every year to make the international headlines not because of its flourishing economy but because of the numerous strikes and overwhelming external debt? Because, at this moment, Greece's national debt exceeds 400 billion euro and it is bigger than the country's economy. And there a voices saying that by this time next year it will reach 120% of gross domestic product.
According to financial analysts, the causes of the Greek economic crisis are various and they go from unrestrained spending and cheap lending to the government's failure to implement financial reforms and great administrative expenses. All of these created a terrible picture: Greece's economy has collapsed and the country is undergoing social and financial turmoil.
One thing is for sure: the current situation, with the numerous strikes and terrible instability, Greece is no longer appealing to foreigners. Losing the income that tourists brought only worsened an already difficult situation. Greece's economy has collapsed and the country is undergoing social and financial turmoil. And the worst part is that its financial situation has pushed down the value of the euro against the dollar and it now threatens to affect the euro zone. One of the first and most obvious consequences is that investors planning to invest in euro zone countries such as Italy, Portugal or Spain will be scared off.
Another big problem is that its financial situation has pushed down the value of the euro against the dollar and it now threatens to affect the euro zone. One of the first and most obvious consequences is that investors planning to invest in euro zone countries such as Italy, Portugal or Spain will be scared off. The Greek Government applied a couple of austerity measures such as rising the retirement age, freezing the state pension, cutting public sector pay and tough tax evasion regulations. Plus, the other countries that form the euro zone have put together a rescue plan for Greece. However, it will be applied only as a last resort and it will involve a series of bilateral loans from countries inside the common currency area as well as some support from the International Monetary Fund.
Article Source: FxTradingStock.com
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In times of economic instability, Gold Sovereigns coins made of 22 carat precious metal are an excellent opportunity for both coin collectors and investors.
by: Jack Wogan
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Date: Thu, 12 Aug 2010
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