Greece has long been facing economic recession which began in 2009 following the global recession 2008. There are many reasons behind the crisis, like government pension scheme, tax evasion by citizens, huge public expenditure, etc., to name a few.
Greek economy has been facing the crisis as it could not repay the debts of EU central bank and IMF amounting to some 320 billion euro. EU, IMF and EU commission extended helping hands twice before through bailout plans, but Greek economy could not recuperate from the crisis and it is reported now that membership of Greece would be withdrawn from the Euro-zone if it fails to implement the austerity measures prescribed by the donors.
In this backdrop, the EU has come up with the third bailout plan wherein a number of conditions has been included to bring back the economy on track. Under the conditions, the government has to take decisions like slashing of pension scheme of government employees, imposing more taxes, reducing government expenditures, etc. Finding no other way, the Greek prime minister held a referendum on the third bailout plan and people voted against it. But the government has accepted the third bail-out plan. It is to be seen how the government protects the interest of the voters and puts the economy back on track.
Md. Zonaed Emran
Treasury Back Office
The Farmers Bank Limited
zonaed.emran@gmail.com
Debt crisis in Greece
FE Team | Published: July 23, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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