Austerity plans in Greece

January 16, 2019

The continuation of austerity policies in Greece has raised the anger of Greek citizens and it has also prevented economic growth inside the country. A significant point to be taken into consideration about the Greece crisis is whether this country is about to remain or exit from the Eurozone. Athens might decide to leave the Eurozone and return to its previous currency, Drachma. Such a return means Greece’s entering a new economic phase. In this case, Greece will no longer be a member of the Eurozone. It should be noted that some European countries are opposed to Greece’s withdrawal from the Eurozone, and warned Athens that Greece would then have to say goodbye to the European Union as well. This is despite the fact that many Greek citizens are asking for a return to the European Union while leaving the Eurozone. Greece has signed three loan agreements with foreign creditors since it verged on bankruptcy in 2010. But the fact is that years of pension cuts and tax increases have left the Greek citizens extremely discontent with the austerity plans. Despite the adoption of austerity policies for over a decade, Greece is still one of the most austerity-stricken countries in the EU. Although Greece was supposed to emerge from the bailout by 2012, and step towards economic prosperity, heavy debts prevented the realization of this process. The European Union, the European Central Bank and the International Monetary Fund loaned Greece a total of €289bn ($330bn) in three programs, in 2010, 2012 and 2015. The Greeks are really hopeless about settling the economy crisis, and the halt of austerity policies at least in the near future. There’s no prospective for Greece to overcome the current crisis and elevate its economy to the level it stood before 2010. But it looks like some Greek authorities are regarding the situation with unrealistic optimism, promising their citizens that this belt-strengthening period is soon to be over. Nevertheless, we can evidently understand that Merkel’s plans for Greece were defeated, and the Greeks don’t see any reasons to comply with her plan. On the other hand, the Greek leaders couldn’t come forth with an overall solution in this regard, and their austerity policies are no longer accepted by the society. This failure has been highlighted as the result of several factors, including the intensification of Euro crisis. It’s not without a reason that the experts are warning about the Greeks’ protests in 2019. Greek Prime Minister, Alexis Tspiras and other officials of the country, despite their party’s anti-austerity approach, are not able to resist the pressure of countries like Germany and France. It’s not without a reason that German Chancellor, Angela Merkel, has become a rejected figure in Greece.

The European Union, the European Central Bank and the IMF loaned Greece a total of €289b ($330bn) in three programs, in 2010, 2012 and 2015.

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