The days of reckoning have approached the arena of Greece as the euro-crates have decided to deny the bailout of 12 billion. The EU finance ministers have given Greece the time of two weeks for trail to prove stringent austerity measures, which includes tax increase, budget cuts, and large-scale privatization programmes. However, we all know that even austerity measures cannot help the falling apart country to fit in its shape.
To retrospect, Greece is bankrupt and under the debt of Germany after joining hands with the Germany in trading. The depreciation in the currency can also be a major reason behind the crisis. Well, to be honest the government suffers for its mismanagement. The outburst of the crisis has created chaos between commoners and the government in Greece. While the people of Athens are counting bread slices, the government is searching for the corners to hide itself.
“The consequences of the violet bankruptcy or exit from the Euro world would be immediate catastrophic for households, the banks, and the country’s credibility” expressed George Papandreou, the Greece prime minister.
This will not only affect Greece dangerously but also split cracks further for other countries bearing Euro debts. It also points to the countries like Ireland, Portugal, Spain and Italy who are going to be under great debt and require huge bailouts. The contagious financial problem can also drag France and Belgium into the menace.
The US and Federal bank can certainly come to rescue the damsel in distress and uphold the economy from collapsing just as they did in 2008. However, this can help the situation only for a while as the US is also bearing debts and falling out just like Greece but under the surface. The US is burdened with the biggest economy debts in its history and the devotion to the dollars is backsliding.
The present fiasco in Greece certainly indicates one thing—nothing can be taken for granted when it comes to economic statures! The economic situation of Europe is not stable and urgent steps are not taken, Europe’s economic castle would crumble down like a house of cards.