Greece is in a bad position, for those of you joining us late. After decades of “epic” economic mismanagement, the Balkan country finds itself in debt of a financial sum worth 160% of its annual gross domestic product. Basically putting all the money/commodity made from a years worth of Greece’s economic activity would leave Greece still swimming in debt. This number is only rising.
So how did Greece get in this position? Well after joining the European family in 1981, and sub-sequentially the Euro, Greece prospered after benefiting from the comfort of knowing they were backed by the great EU. Though the economy of Greece was never a major force in the world stage, their financial hardships are sending dramatic waves through the European nations and the world, because the major players in France and Germany have agreed to provide assistance only possible through taking money from other states.
Now faced with the choice between defaulting on their massive debts or implementing massive austerity (cost-cutting) measures, the country Greece is once again reminding the world why the Balkan peninsula is frequently connected with the “epic” and “mythological”.
