留学生Essay写作—希腊公投结果的影响

1、http:/ 留学生论文专业定制代写网站留学生Essay写作希腊公投结果的影响IntroductionThis paper will examine the social welfare and economic implications of the recent 2015 referendum on Greek bailout conditions offered by the ECB and IMF,starting with and examination of the history behind the crisis,the resulting series of financial bailouts along with the conditions imposed and their economic and social welfare ramifications,and the potential irrelevancy of the recent 2015 referendum on the actual outcome of the negotiations.T

2、he Background to the Greek Debt CrisisThe Greek debt crisis essentially started in late 2009,after economic reports about the Greek governments current deficit and debt levels made clear that the Greek government had deliberately under-reported their current deficit and financial situation in 2008 and 2009,with the deficit at the end of 2009 estimated independently at 12.5%of Greek GDP,twice the amount reported by official Greek governmental figures during that time (Simitis,2014).These issues w

3、ere further exacerbated by the revelation that Greek sovereign debt exceeded the 91.4%of Greek GDP previously reported,and actually stood at 126.8%of total Greek GDP due to a number of debts and liabilities within the Greek public sector that had been over-looked during the previous reports issued by the Greek Ministry of Finance(Simitis,2014).These discrepancies in reporting raised serious concerns over Greeces ability to accurately report its current financial situation,and the resulting sover

4、eign debt ratio of 128%of GDP raised serious questions over the governments ability to meet its current financial obligations(Ardagna and Caselli,2014).The results of the revelations,occurring during the aftermath of the recent global financial crisis,led to a downgrading of Standard and Poors credit rating of Greece to BB+,a rating which indicates a significant possibility of default on borrowing(Standard and Poor,2015).This caused the interest rates of 5 year bonds issued by the Greek governme

5、nt to rise to 5.385%in November 2009,a figure 1.42%higher than the average rate of all other similar Euro-zone government bonds during that time(Simitis,2014).This also occurred at a time where the Greek government was running a significant structural deficit,with governmental spending at 53.2%of GDP,and public revenue of only 37.8%(Ardagna and Caselli,2014).In other words,only further borrowing would be able to sustain the current level of Greek public services,borrowing which had just became e

6、xponentially more expensive to maintain.Given the developing crisis in the Eurozone,the European Central Bank (ECB)chose to step in and offer assisted bailouts and loans using funds appropriated from other EU member states and the IMF(Baimbridge and Whyman,2014).To this end,the Commission,the ECB and the IMF established the European Financial Stability Fund(EFSF,2015).The EFSF issued a bailout loan of110bn in 2010 to the Greek government,which came with the condition that tight austerity measure

7、s be put into place,including a number of cuts across a broad spectrum of public services and a series of tax increases to boost governmental revenue(Ardagna and Caselli, 2014).Similar conditions were given to other recipients of bailout loans from the EFSF,including Ireland and Portugal,who as of 2014 have successfully reduced their national debt levels and current account deficit to that specified by the bailout conditions(Baimbridge and Whyman,2014).However,the Greek government was hit with a

8、 further recession in 2011,with GDP growth contracting by 9.6%in the 4th quarter of 2010,and then a further 10.4%fall in the 1st quarter of 2011(World Bank,2015).The continuing economic problems faced by Greece were due to a number of factors,including a severe fall in revenue from both tourism and shipping due to the global economic crisis,two of Greeces most important industries,and significant discrepancies between total taxes owed and total tax revenue,with total tax income in 2012 being51.

9、99bn,against the expected110.79bn as reported by a State Audit Council report(Argitis and Nikolaidi,2014).These conditions meant that Greece was unable to continue to meet its financial obligations in 2012 and again faced the possibility of sovereign debt default,requiring another bailout loan to be made by the EFSF of another130bn,with additional conditions attached that required Greece to cut public spending by a total of3.3bn by the end of the year,followed by further cuts of10bn by the end of 2013,and again in 2014(Ardagna and Caselli,2014).The Ramifications of the Imposed Bailout ConditionsThe austerity measure conditions that were included as conditions on the two separate bailout loans to the Greek government were met with strong resistance from the Greek populace,and a number of anti-austerity demonstrations and riots occurred throughout the country in 2010,2011 and 2012(Simitis,2014).The public reactions to the sugg

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