The crisis in Greece that we are witnessing today began back in 2010. Moreover, one cannot talk about 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 was this country hit? What are the causes of the crisis in Greece? Consider those that are especially discussed in the media.
Non-material reasons
Partly, the economic crisis in Greece is caused by the fact that this country is the only state in the constitution of which there is a provision on the rule of the Orthodox Church. And this is no coincidence. The majority of the country's population adheres to the Orthodox religion. That is why Greece for a long time opposed European officials, most of whom demanded restrictions on the influence of Orthodoxy. Brussels proposed separating the Church from the school and ensuring the full status of religious, sexual and ethnic minorities.
For a long time, Greek and European media campaigned to discredit the Church of Greece. At the same time, they charged her with moral corruption of the clergy and tax evasion. Such statements reached the point that the Orthodox Church was called almost the main culprit of the crisis that erupted in Europe. Based on this, the separation of the Orthodox Church from the state began to demand even some of the major politicians of both Greece and other countries.
The main target of such propaganda was monasticism. The anti-church campaign has widely used the case of the financial abuse of Abbot Ephraim from the monastery of Vatoped. Many other not so well-known cases were described.
Tax evasion
According to many media reports, 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 the direction of popular anger against the parasite churchmen. In response to these allegations, the Holy Synod published its refutation. The Greek Orthodox Church issued an appeal in which all taxes paid to the budget were listed in detail. Their total size in 2011 exceeded the amount of twelve million euros.
The crisis in Greece was a severe test, which affected the entire clergy. A little over 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 clergy salaries were to be paid from the country's budget. However, the Greek government, pursuing austerity policies, not only significantly reduces payments to priests, but also constantly reduces their number. Thus, according to new legislative acts, only one new minister of the church, who took the place of ten retired or deceased representatives of the clergy, can count on a salary from the state. This situation was due to the fact that parishes in remote areas of Greece are experiencing a shortage of priests.
Despite the accusations made and the current situation, the Orthodox Church does not leave believers. She provides all possible financial assistance to those who suffered from economic collapse. The church has opened many free eateries, and also helps thousands of families with free groceries and cash benefits.
Low level of production
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 for grape growing in many other sectors of agriculture. And if earlier Greece was engaged in the export of food products, then today it is forced to import them.
A similar situation has developed in industry. Thus, the Greek economy before the EU was supported by the work of many enterprises. These included several large knitwear factories that are closed today.
Reacted to the crisis in Greece and tourism. Every day, the country loses up to fifty thousand people who want to spend their holidays on the shores of the blessed Hellas. It also negatively affects the country's economy.
In addition, having become a member of a united Europe, the Greeks ceased to provide for the country, having fit into the system of division of labor existing within the community. They switched to the construction of a post-industrial economy, in which the service sector dominated. At one time, they received praises 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. Owing to the economic policy pursued, from 2006 to 2009, the share of the service sector in the country's GDP significantly increased. From 62%, it rose to a mark of 75%. At the same time, the share of industrial production sharply decreased in the country. But at that time no one paid much attention to these figures. After all, the bulk of the country's population received good income, which were secured by loans.
On what conditions did Greece enter the new community? The EU has set a condition for it to change attitudes and property management. Strategic enterprises under state control should have been fully privatized in the country.
In 1992, Greece passed a privatization law. And already in 2000, twenty-seven large enterprises went out of state control. These included five major banks. Significantly decreased the share of the state in the National Bank. By 2010, it amounted to only 33%. Further, factories of building materials and the food industry, as well as a telecommunications company, were sold. Even the production engaged in the release of the famous brand of cognac Metaxa, has left the British company Grand Metropolitan. Greece ceased to engage in shipping, which brought significant profits. In this regard, the state began to sell its ports.
Poor country?
Why is Greece in crisis? Some believe that the erupted economic collapse is associated with the country's poverty. However, contrary to popular belief, Greece has a rich mineral reserve and tremendous 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 mentioning that today in Greece there are significant volumes of proven mineral resources. Their development is not conducted solely because of the unpatriotic policies followed by the local government, and because of EU pressure.
Army civil servants?
Some experts believe that the crisis in Greece arose due to the huge staff of government officials. However, it is not. In terms of the number of civil servants, Greece is in the fourteenth place among the European countries in the community. So, the ratio of such workers to the total number of workers is:
- for Greece - 11.4%;
- for the UK - 17.8%;
- for France - 21.2%;
- for Denmark - 29%;
- for Sweden - 30%.
To date, Greece lacks staff in various fields, including hospitals. Among the civil servants in the country are priests, 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 government adopted in accordance with the general policies of the European Union. These solutions were used by residents of Asian and African states, most of whom are Muslims. Massive landing of immigrants has led to the fact that in Greece crime, corruption and the shadow economy have grown significantly. Significant damage has been done to small businesses, as visiting entrepreneurs do not pay any taxes. Hundreds of millions of euros began to be exported annually from the country.
Economic management
To date, 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, falling under the tight control of the IMF, the European Commission and the European Central Bank. This "troika" did not allow the holding of a referendum in the country, which would enable the Greeks to express their own attitude to the measures of state economy and make the only right decision. As a result, thousands of people found themselves beyond poverty.
The West puts forward to Greece demands not only economic, but also political concessions. EU officials are in favor of reducing the army, separating the church from the state and ensuring the rights of non-Orthodox immigrants. This is an open interference in the internal affairs of the country.
Salvation of greece
Numerous media impose the opinion 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 112%. This figure for many seemed simply monstrous. After the measures taken to “save” this indicator rose to the level of 150%. If the European Union continues to provide its assistance in the future, then the situation may worsen even more. The forecast of the Greek economy with a reduction in 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 help offered to Greece will not solve its financial problems. She only preserves them. And this became clear when experts calculated how much Greece’s debt would be by 2020. This is an impressive figure of 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. Over the years, she will be forced to work only to service this assistance, leaving her citizens no hope of a better life.
There is an opinion that Europe does not extend a helping hand to Greece at all. Financial support, obviously insufficient for this country, will relieve the headache of the European Bank.
Creditors Responsibility
The essence of the crisis in Greece lies in the fact that the country was 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 original Greek problem was created by the European Union. Prior to EU assistance, the country's debt to GDP was lower than that of the United States.
Despite the fact that in 2009 the insolvency of the state became apparent, community officials literally imposed 90 billion Euro loans on Greece. First of all, it was beneficial to the banks themselves. After all, every euro given brought a considerable income. The Greeks did not spend loans at their own means, and banks earned on this.
EU freeloaders?
One of the causes of the crisis in Greece, the media called the desire of the country's population to live off the subsidies provided. However, all loans issued by the Eurobank with a certain condition. Financial assistance cannot be spent on raising social benefits and pensions. The amounts received should go only to the creation of infrastructure facilities that are unprofitable and useless to anyone. Of course, such loans do not at all improve the life of the people. They are beneficial only to Greek and European financiers and officials.
The media reports that Europe has forgiven Greece part of its debts. However, it is not. Agreements to write off 50% of loans concern only private investors. Greece still owes Germany. Those private investors to whom debts are written off are the country's banks and pension funds, which will eventually lose half of their assets.
