And most importantly, this situation with the sovereign risk is not only characteristic to Greece, but to various other countries, including the United States. "More especially, the IMF is concerned that higher sovereign risk in countries like Greece can spill over to domestic banking systems and across borders, thereby triggering a second global economic crisis. It is also important to note that sovereign risk is not confined to Greece, but there are a number of other global more systemic important countries that fall into this category, including the world largest economy, the U.S.A." (All Africa, 2010).
In terms of the immediate impact, this would be most obvious within the neighboring Balkan countries. Greece is one of the largest investors in the Balkan region as well as one of the greatest donors. When its economic problems hit, the country's investments and donations would significantly decrease, to eventually impact the initial destination countries. Additionally, Greece is also the host country of millions of immigrants from neighboring states (Fotiadis, 2010). The respective states would no longer receive funds from neither the Greek government, nor from their own citizens employed in Greece.
Aside from the loss of a donor and an investor, the European countries would also be faced with the loss of a trade partner. At the level of the European Union, the member states have already weakened their financial strength in order to support Greece. Had they not done this, the weakening Greek economy could have...
2091). Today, the European Union is an international organization comprised of 25 European countries that governs common economic, social, and security policies. While it was originally restricted solely to the nations of Western Europe, the EU has since expanded to include several central and eastern European countries (Gabel, 2006). The countries of the EU today are, in alphabetical order, Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
This flaw creates an incentive for firms to accumulate large sums of unpaid taxes over several years and then enter into negotiations with the tax authorities in order to remit small proportion of taxes. This flaw has been a constant feature of all tax reforms and thus makes the whole tax system less credible and more prone to abuse. Following the inadequate government intervention, it is clear that, in 2009,
For the first time in many years, nations like Japan can no longer guarantee employment for their large population and they must consider a new welfare option. These are all economic situations that are new and indicate that population has an adverse affect on the world economic policies. Conclusion This report aimed to discuss some of the relationships between population growth and economic development. Economic growth will continue to be an
These are largely consequences of the geographical and geostrategic position of the Greek state. There are other courses of action as well which influence both the EU and Greece which result from Greece's position. Given the proximity of the state towards Africa through the Mediterranean Sea, Greece has an important access to the Middle East. In this sense, it fosters relations both with Israel, as well as with the Arab
European Economic Crisis -- Greek Government This paper provides a deep insight into the European economic crisis and the events which eventually lead up to Greece debt crisis. It explains the causes which were responsible for the chaotic and poor financial situation currently prevalent in Europe. It also analyses the current tools used for stabilizing the situation in Greece and the shortcomings in them. It also highlights certain steps and measures
economic growth and inequality necessarily compliments? Economic Growth and Inequality The relationship between economic growth and economic inequality has been thoroughly studies throughout the decades. Some of the theoreticians in the field claim that economic inequality has a positive effect on economic growth, while others have concluded that the effect is actually a negative one, because of the costs it implies, and a more economically equal situation would be preferable. However, practice
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