Assistant Professor, Bharati Vidyapeeth Institute of Management and Research
This paper presents and critically discusses the origins and causes of the Greek fiscal crisis and its implications for the euro currency. In the aftermath of the 2007–2009 financial crisis the enormous increase in sovereign debt has emerged as an important negative outcome, since public debt was dramatically increased in an effort by the US and the European governments to reduce the accumulated growth of private debt in the years preceding the recent financial turmoil.
The Eurozone is facing a serious sovereign debt crisis. Several Eurozone member countries have high, potentially unsustainable levels of public debt. Greece, Ireland, and Portugal—have borrowed money from other European countries and the International Monetary Fund (IMF) in order to avoid default. With the largest public debt and one of the largest budget deficits in the Eurozone, Greece is at the centre of the crisis. Further the aim of this paper is to analyse the reforms to overcome the Greek debt crisis and organizing the future of the European monetary union.
