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The Greece Debt Crisis -By, Saujanya Roy Indian Maritime University, Kolkata A financial crisis is characterized as a situation in which the prices of all the significant assets experience a huge decline in their financial value. Many crises have occurred throughout history. One of the most notable is the Greece Debt Crisis which the Greeks have been experiencing as an aftermath of the 2007-09 financial crisis. Greece seems to have suffered the longest duration of stagnation in recent history due to the crisis. Greece, like many other European countries, had experienced the 19thcentury debt crisis. However, Greece had emerged as one of the fastest GDP growth rates in the world during the twentieth century. Greece joined the European Economic Community (now the European Union) in 1981, with an impressive debt-to-GDP ratio of just 19.8% on average. (www.britanica .com)
In October of 1981, the Panhellenic Socialist Movement (PASOK) came into power, ending a brutal seven-year long military Junta. Since then, the power has always shifted between the PASOK and the New Democracy Party (ND). In order to win over the voters, both the parties lavished several policies over the years which resulted in soaring inflation rates, slow growth rates and creating an inefficient, bloated economy.
One of the most infamous Policy was to annually increase the salary of all the workers in the public sector irrespective of their performance or their productivity. The workers also received an
