greece economy crisis & impact
TRANSCRIPT
![Page 1: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/1.jpg)
Greece EconomyGreece EconomyCrisis & Crisis & ImpactImpact
VAIBHAV KOLI
Presented By -Presented By -
![Page 2: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/2.jpg)
ContenContentt
• Introduction• Background• Effect• Measures• Impact• Current News• Future• Conclusion
![Page 3: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/3.jpg)
IntroductioIntroductionn
• Place- Southeast of Europe• Capital- Athens• Population- 11,027,508• Human Development Index- 29th Rank• GDP rank- 45th Rank (Nominal)• Total Debt- 323bn Euro• Dept per Citizen- 31,025 Euro (Rs 21,83,386)• Currency Before Euro- Drachma• Main Industries- Tourism & Shipping
![Page 4: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/4.jpg)
Background
How Crisis
Started?
![Page 5: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/5.jpg)
Entry In European Union (EU)Entry In European Union (EU)
• EU formed in 1958 • To remove
regional disparity, improve economy & increase trading
• Greece Joined EU in 1981
![Page 6: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/6.jpg)
Entry in EuropeanEntry in European Economic & Monetary Union (EMU) Economic & Monetary Union (EMU)
• Greece Joined EMU in 2001• Switch Drachma to Euro currency• For stable prize & exchange rate• Also low interest rates
![Page 7: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/7.jpg)
Government PoliciesGovernment Policies
• More Government Jobs• Increase in Employees
Salary• High Tax Evasion• High Corruption • Obsolete Pension System• Increased Access to
Capital at Low Interest Rates
![Page 8: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/8.jpg)
Hosting Olympics (2004)Hosting Olympics (2004)
• Venue – Athens• Cost – Near about €15 billion
![Page 9: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/9.jpg)
Deficit RateDeficit Rate
• High spending by 87% & weak revenue by 31%• Budget Deficit 5% reported
![Page 10: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/10.jpg)
Fraud ReveledFraud Reveled• Misreporting financial data• European Commission issues formal
warning
![Page 11: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/11.jpg)
Rating DeclinedRating Declined• Downgrades Greece's credit rating• From ‘A-’ to ‘BBB+’ (Now CCC-)• The budget deficit was doubled to 9%
![Page 12: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/12.jpg)
EffectEffectss
What went wrong?
![Page 13: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/13.jpg)
Stock MarketStock Market
• Effect of US Sub-Prime Recession • The Stocks & Euro declined
![Page 14: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/14.jpg)
Industrial ProductionIndustrial Production• Manufacturing decreased by 11.3%• Electricity Production dropped by 12.2%
![Page 15: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/15.jpg)
Bank In TroubleBank In Trouble
• Greek bank stock price declined by 47%
• Greek bank deposits have fallen to €8.4 billion
![Page 16: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/16.jpg)
Retail StoresRetail Stores
• 65,000 Retail stores closed• Private sector wages cut by 10-20%,• Govt. sector wages cut by 20-30%.
![Page 17: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/17.jpg)
Impact on European Union (EU)Impact on European Union (EU)
• Crisis reduce confidence of other European economies
• Italy, Spain, Portuguese, Ireland are most at risk with their debts
![Page 18: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/18.jpg)
Measures
What's the way out?
![Page 19: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/19.jpg)
11stst Round of Crisis Response (Feb 2010) Round of Crisis Response (Feb 2010)
• Bailout ContributionBailout Contribution (€110 billion)(€110 billion)1. IMF (International Monetary Fund) = €30 bn2. Euro Zone Creditors = €80 bn • ECB (European Central Bank) purchased €45 billion bonds from Greece govt.
![Page 20: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/20.jpg)
Austerity MeasuresAusterity Measures
• Freeze in salaries of all Govt. employees.• 10% cut in Bonuses & overtime work.• 8% cut in public sector allowances
![Page 21: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/21.jpg)
22nd nd Round of Crisis Response (July 2011)Round of Crisis Response (July 2011)
• Bailout ContributionBailout Contribution (€109 billion)1. EFSF (European Financial Stability Facility) = €109 billion2. ECB liquidity support for Greek banks = €98 billion• Euro zone leaders agree a 50% debt write-off from Greek
Banks
![Page 22: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/22.jpg)
Revised Austerity PlanRevised Austerity Plan• Increases in VAT [10%]• Return of special tax on high pensions• Average retirement age increased from
61 to 65
![Page 23: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/23.jpg)
33ndnd Round of Crisis Response (Feb 2012) Round of Crisis Response (Feb 2012)
• Greek parliament approves a new package= €1€130 30 billionbillion
![Page 24: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/24.jpg)
FurtherFurther Austerity MeasuresAusterity Measures
• Further cut in salaries by 8%• The 13th & 14th salaries paid & pension
installments abolished • 10% rise in luxury taxes and taxes on
alcohol, cigarettes and fuel.
![Page 25: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/25.jpg)
Impact
What happened
Next?
![Page 26: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/26.jpg)
Unemployment IncreasedUnemployment Increased
• Unemployment rate goes to 27.47%• 613 people lost their jobs per day
![Page 27: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/27.jpg)
• 7 out of 10 considering working abroad• Attacks on foreign immigrants to leave
Greece
DeparturesDepartures
![Page 28: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/28.jpg)
Inflation RiseInflation Rise
• Inflation rate moving above 4%• Shortage of food in market
![Page 29: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/29.jpg)
Poverty StrickenPoverty Stricken
• No Job, No Food, No Shelter• People lived on Streets
![Page 30: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/30.jpg)
Riots on streetsRiots on streets
• Thousands of protesters march on parliament
• “We wont pay for your mistakes”
![Page 31: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/31.jpg)
Political ChangePolitical Change• Syriza (Radical Left) Party in Power• Alexis Tsipras led Syriza to victory by Anti-austerity Votes
![Page 32: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/32.jpg)
Current Current AffairsAffairs
• Missed IMF repayment of €1.6 billion on 30th June 2015• All banks closed from last week & restrictions
on ATM for only €60 per day• PM Alexis Tsipras announced the referendum
bailout with austerity or not at last Sunday • 61% voted “NoNo” to austerity (OXI)(OXI)
![Page 33: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/33.jpg)
Future of Future of GreeceGreece
If “Grexit”“Grexit” happens then• Introduce a New Currency A parallel currency could be used for a while • Return to the Drachma Eventually revert to the drachma• Nationalize Greece's Banking System “We will shut down the banks and nationalize
them” • Huge Credit Lockdown EU members credit lockdown in Greece
![Page 34: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/34.jpg)
ConclusioConclusionn
Economic PlanningEconomic Planning is very important for sake of national health & stronger reform is needed to get out of crisis.
![Page 35: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/35.jpg)
ReferenceReferencess
• www.aljazzera.com• www.france24.com• www.bloomberg.com• www.newyorktimes.com• www.wallstreetjournal.com• www.nationaldebtclocks.com• www.statastica.com• www.timesofindia.com
![Page 36: Greece Economy Crisis & Impact](https://reader036.vdocuments.us/reader036/viewer/2022062316/58a5c1a11a28ab0b068b65e9/html5/thumbnails/36.jpg)
Thank Thank YouYou
ευχαριστώ