¶ … European sovereign debt crisis has quickly become one of the main topics in today's news and more specifically in business and finance news. The European governments are struggling to not only bring back stability but also maintain it with relation to their finances. John Nugee from State Street Global Advisors has described this European sovereign debt crisis in a very clear and concise manner stating that "economically, it is clear that several EU countries -- most notably Greece, Portugal, Spain, Ireland and Italy within the Eurozone -- have been running very large deficits for some time, and are reaching or have already reached levels of debt-to-GDP that are above 100% GDP." It is important to note, however, that the reasons behind the deficits and large debt levels and in turn the sovereign debt crisis differ between countries. So, we need to begin by taking a closer look at each individual country in order to pinpoint exactly what caused such a crisis. Taking a closer look at Greece allows us to verify that poor tax collection was one of the major causes of the countries deficit and large debt level (Nugee). In addition, there seemed to be a discrepancy between the government expenditures and their tax receipts. Tax evasion also added to the problem and Greece has been taking more and more steps to identify tax evasion situations and slowly eliminate them. Reports have shown that Greece has a 13% fiscal deficit and 113% of public debt as a percentage of its GDP (sovereigndebtcrisis.net). To date, Europe along with the International Monetary Fund have provided financial support to both Greece and Ireland totaling 200 billion Euros, or $262 billion, in order to keep the two countries from completely going under (cnbc.com). As part of the rescue package given to Greece, they are expected to fulfill a three- year adjustment plan; however, even if they manage to do so, their debt is estimated to further rise to 158% of its GDP by 2013 (cnbc.com). Their debt crisis was further afflicted by a rating downgrade in March 2011 by Moody's. Greece's credit rating was decreased by three points lowering it from Ba1 to B1, and this may not be the end of such downgrades. This downgrade...
2004-2010: The Building of a Crisis Greece's admittance into the Eurozone had its skeptics at the time it happened, and the controversy increased with the admission in 2004 that the deficit figure was fudged in order to allow Greece to join the exchange rate mechanism on January 1, 2000, which was key to the country being allowed to use the Euro when the currency was first introduced on January 1, 2002. Between
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The nation of Greece is currently in debt to its creditors to the amount of 321 billion Euros -- "approximately 180% of its annual economic output" -- effectively making the nation a debt-colony (Rankin). As of 2015, the IMF had pledged nearly 50 billion Euros to Greece (and had leant the nation more than 30 billion up to that point -- with the rest contingent upon Greece making payments that
Significance of the Study This study is significant because it sheds light on a very important contributor to local and international trade. Trade fairs have a long history in providing a meeting place for buyers and sellers. They are an important channel of communication for B2B buyers and sellers. This is a significant area for study because there are limited channels of communication between B2B buyers and sellers. The previous sections
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