Combating the crisis

If Greece were to default on its debts it would have a negative knock on effect for the rest of the EU. In an attempt to prevent such an event, the Greek government, the Eurozone and IMF have been trying to sort out the crisis over the past two years with a series of bailout packages and austerity measures. 

It feels nowadays that it is impossible to turn on the news without hearing about another bailout for Greece, and with so much information to digest, it can sometime feel hard to keep up.  Let’s take a look back and try to summarise the attempts at fixing the problem.

When the crisis started in 2009, Greece's credit rating was downgraded in fear that it would default on its ever growing debt.  Greek prime minister George Papandreou announced a series of tough cuts in public spending. 

January 2010 saw the government announcing a second round of severe austerity measures including public sector pay cuts, an increase in fuel prices and a crackdown on tax evasion.  Obviously unpopular with the public, the austerity measures led to various strikes which continued for a few months.  By April 2010 a 100bn euro bailout package was agreed by eurozone countries in an attempt to rescue the country, as fears of default grew.  The bailout package meant stricter austerity measures were to be put in place.

No further bailouts were given in 2011, however, the year seen many talks between eurozone countries, more downgrades and even more austerity measures to try and get Greek finances back on track. 

By 2012 tension in Athens had reached an all time high and the people of Greece took to the streets in violent protests.  

Most recently and a new 130bn euro bailout has been agreed by the EU to aid Greece.