41-60

• Kefis, Vassilis
• Xanthopoulou, Panagiota

This paper presents and critically discusses the origins and causes of the Greek fiscal crisisand its implications for the euro currency. In the aftermath of the 2007-2009 financial crisisthe enormous increase in sovereign debt has emerged as an important negative outcome, since public debt was dramatically increased. Although Greece is the country member of the Eurozone that has been in the middle of this ongoing debt crisis, since November 2009, this negative situation of the increasing debt leads the Greek government to happily accept a rescue plan of 110 billion euros designed and financed by the European Union and the International Monetary Fund (IMF). A lengthy austerity programme and a fiscal consolidation plan have been put forward and are to be implemented for the next three years (for the period 2010-2013). Then, we present an analytical reference of the three major problems of the Greek economy: the problematic productive structure, the increasing shadow economy and the existence of corruption in public administration. The lack of quality institutions led to distortion of incentives in the country and poor distribution of existing talent. Basically, all these factors highlight the need for developing successful negotiations at the forefront of the Greek and European scene in order to ensure the rights of Greece’s workforce to the extent possible. The present paper attempts to analyze the catalytic role of the four forces which lead to social and economic development during a period of continuous changes in the political, social and economic life of Greece but also the entire European scene.

• Economics and Business

• Οικονομική ιστορία

Crisis, Greek debt crisis, the Tripartite Mechanism of Support, Troika, Corruption, Shadow Economy, Recession, Negotiations, Win-Win, S.W.O.T Analysis, PESTEL Analysis, Development Policies, Recovery

JEL Classification: H30, H63, Η83

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