Anatomy of the EU Economic Crisis – Internal Factors that Worsened Greece's Debt Crisis

Greece has no real manufacturing base. In contrast, Greece is mainly on tourism, which is profitable only to burn when people have cheap nfl jerseys money to spare are based. But in times of economic crisis, Greece will inevitably be wrong. Therefore, the fundamental problem is the Greeks that their economies are dependent on the well-being of other nations. Greece is a little bigger than the stomach. This is evident from the massive external debt, even if they do not know how they can afford it, after all, they were exposed to the risk of recession. It could have been avoided if the only problem. However, there are many other factors that exacerbate the already difficult internal situation, and that is exactly what we are talking about.

First, Greece paid her public officials too much.

Throughout the last decade, it appeared that Greece misused her funds to give free money to government officials and unnecessarily salary raises for government employees. This is bad not just on a moral point of view. More than just for the sake of righteousness, there simply was no economic need to do so.

Greece had no staffing problems, public officials do not live below poverty, there was simply no reason to do so, except for sheer greed and corruption. Thus, this further bloated Greek foreign debt.

Second, Greeks evade taxes on a massive scale.

More than a fifth of the Greek economy is beyond the tax radar. Basically, this means that financial transactions are not recorded on paper, so that there is very little for the Greek internal revenue service to audit. Thus, tax revenue for Greece continually fell.

However, the government did not find ways to fix this problem – they are awash with money from foreign funded loans. Furthermore, operation expenses for the Greek government went nowhere but up, on account of natural inflation, worsened by padded government payrolls.

The Greeks camouflaged the fiscal deficit by borrowing more. It like acquiring loan to pay nfl jerseys for other loans. Instead of using loan money to strengthen its economy, Greece spent them on superficial priorities. Thus, as soon as the first big wave hit, the Greek house went crashing down.