Greece crisis that can not be cured.

EU stem the global economic crisis
All readers will recognize Greece in the prototype of the Olympic Games. Greece is a country in southeastern Europe. At the southern end of the Balkan Peninsula. It is bordered to the north by Bulgaria, Macedonia and Albania, bordering the east with Turkey. The Aegean Sea to the east. The Ionian Sea and the Mediterranean Sea in the west and south. Greece has been a tremendous source of Western civilization. And has a long history Which Greece has spread its influence to three continents and the world-famous philosophers such as Socrates, Plato, Aristotle, and refinement.
Greece is one of the EU (European Union, EU) since 2523, which means that the EU member states and 27 countries have agreements on economic cooperation. To achieve a single market Increase the competitiveness of the country as a whole. This cancels the border economy. Including labor mobility. (Citizens of the member states in the EU is able to work without a work permit) move scholarships (tuition of students in the EU Member States, as any student in the country. Made available to students in EU Member States to England together. Because the students were learning English) is interesting in EU member states to use the same currency, the EU means that the EU will be to determine the exchange rate. And interest rates This is due to the currency above means that EU member states in the EU continues to have a government of their own. And management issues on their own unless they lose control of the exchange rate. And interest rates Must come from the European Union that it is the government of the member states will be left with only a single economic management tool that is fiscal policy. (Through taxation And government spending) and monetary policy. (Exchange rate and interest), the Union of Roma will be established. Because they believe that the use of the euro together will make the euro as the currency to balance the power of the US dollar.


Which many have argued that it is. In determining interest rates and exchange rates. Governments of the member states can not control it. In time of economic problems in the country is required to depreciate. Or cut The government is no mechanism to fix the economy. It is sure to have a fiscal policy that does not translate easily enough, or is the government can only raise or lower taxes. To increase state spending to stimulate the economy only. But I can only depreciate to goods produced in the country were down compared with the partners. The problem is the EU's Council of Finance has set criteria in mind. The new EU member states to join the euro zone when it. There is no timeframe clearly, however, the Treaty on the establishment of the European Union (Treaty of European Union, known as the Maastricht Treaty) has stipulated explicitly for the euro zone (ie the euro. ) conditions such treaties to be specified.
1) to maintain price stability (Inflation higher than the average of the 3 first lowest inflation of 1.5%).
2) A public finance sustainability. (Budget deficit does not exceed 3% of GDP and public debt at 60% of GDP).
3) have maintained a stable exchange rate. And long-term interest rate is similar. It is seen that such criteria were screened country was not ready to leave the euro. To ensure that the use of such common currency would not be a problem later. Due to the euro has been characterized with the economy. And a similar policy there is an assumption that the EU has in mind. But real life is not as easy as that.
Greece's budget deficit Evert belly
In previous mention of the euro. Greece has started adopting the euro after the Member States with more than 2 years (the euro was adopted from 1 January 2544, Greece is adopting the euro in January 2546), but until now, some countries with economic size large. English Did not use the euro as the currency of the country. Which is considered to be an extremely farsighted. I will explain later on why Greece is one of the weaknesses of the European Union. I was facing a budget deficit of the past. The investment in the Olympics in 2004 (the year 2547) and the cost of other states that it is not taxed on target. Compared to budget money spent out in the various character by the year 2552, the fiscal deficit of Greece is 12.7% of GDP, above the level recommended by the European Union (EU) is set to approx. 4 times (ceiling of The Stability and Growth Pact (SGP), which the European Union is set at a level not to exceed 3% of GDP), the deficit will result in the government debt of Greece, rising by the year 2552. government debt of Greece, reached 112.6% of GDP, well above the level recommended by the European Union is set to about 2-fold (ceiling of The Stability and Growth Pact (SGP), which the European Union is set at a level not to exceed 60. % of GDP), which is considered very high numbers in both. Compared with other countries in the Eurozone (the 16 countries that use the euro from EU 27 countries) concluded that Greece has a current account deficit at a very high level. The assessment of the IMF (IMF) is estimated at 14% of GDP, reflecting the vulnerability that exists in the economy of Greece, which sent out. And government spending beyond Listen, this is a rather hard.

At this point, many readers may be wondering how the problems of Greece. Associated with the use of the euro do. I have to explain this one After Greece, the euro is the currency of the country in 2544, which opened the door to the global financial markets. Greece to borrow more easily. The investor confidence in the euro. Since Greece is a member of the eurozone. Greece's government is spending money lavishly. The high salaries to officials There are many programs that make it simple. The Debt The cost is very high, while government revenue from taxation not in accordance with the Greek people, especially the middle class tend to avoid taxes. Since the euro And investors' confidence on the euro. Make up the euro Which, by their nature, will result in the ability to export the country's decline. (Because of the expensive compared with partner countries), which Greece is experiencing economic crisis. Necessary to depreciate (According to the market mechanism) to enhance the competitiveness of the goods or services for export. But alas, Greece is unfortunately so that the reader Greece can not do anything with the money to drop it, since the single currency shared 16 races Moreover, the monetary policy of Finance of Greece would not be flexible as well. should actually when the economy collapsed. The money should be soft but by market forces which bind to the euro appreciated against the dollar by about 15% in 2552, making it seem that the amount of Greece, higher than it should be. (As the economy worsened the money should be soft. But it was hard for the money) and the fiscal position of the country in which the poor have reached 9,000 - 12,000 million. To host the Olympics in 2547 and has a budget deficit of 3.2% of GDP since then. The Greek economy collapsed, making up a point of no return.

In addition, the global economic crisis in 2551 caused by Jessup prime (Sub-Prime) in the United States. The interest rate rise The state has an obligation to pay more interest on the dollar. Imported goods, it looks cheap. The domestic industry is tough competition The Greece rely on revenue from services, navigation and tourism. The labor to 60% in the services sector. When the global economy collapsed World trade declined significantly. The shipping industry has been And tourism industry worldwide in the last 5 - 6 years ago, it was influenced by fear of terrorism, SARS and avian influenza in 2009 became the victim repeatedly beating on a big event.

Greece and eventually reached a stalemate. Required to process the request for assistance from the EU Member States. And the International Monetary Fund (IMF).
I like a cash injection of antibiotics.
In most EU member states need to help Greece to stabilize the economy of Greece sank further. The impact on the EU as a whole. In December 2553, the IMF or the International Monetary Fund (IMF) to lend to Greece who are experiencing severe debt and budget deficit. Amounting to 2.5 billion euros, or about 1 billion baht under the formula of the IMF stated that the Greek government will have to implement policies and strict austerity measures needed to cut government costs down. (This recipe for drug offenses Been to Thailand in 2540 ago) IMF expects the Greek government tightened control of the budget. Greece's economy are going down to the dive. Gradually, slowly recovering And cut Greece's budget deficit down to 3 percent in 2554, as part of the Loan Fund, worth 110,000 euros, the EU or the "EU" and the IMF was set up in May 2553. ago to help countries Especially in the euro zone economy will be saved from bankruptcy. The total amount of loans that Greece has been. Since the crisis has added a total of 10,580 million euros, or approximately $ 421,000 million baht.

Since getting a loan to Greece It does not show signs of recovery in any way. Also, an additional loan Until the Eurozone Announced in October 2011, after consultation among members of Quaestor for 7 hours at Luxembourg. Whether Greece plans to reduce spending in the years 2013-2014 to tighten up. This will lead to a final decision is clear before the end of this month to approve aid pack 2, from 8,000 million euros, as agreed in July 2011, but looks promising and will inject another few rounds, just like drug interactions. Biology I The symptoms improved rapidly in the short term. But the disease is cured Break Symptoms economic collapse would circle back.
Medicine doctor treating the cause of the disease is better.
Loan intravenous economy of Greece in the above. This is probably not the answer Because Greece is not able to manage the economy at a handful. The limitations of being a member of the euro. What Greece do is to borrow money. And bonds only since Greece joined the euro. Greece is a country at a disadvantage from the financially strong. The economy can not grow from the manufacturing sector. And export The government did, however, injecting more money Mega Project to create purchasing power. The group is expected to generate employment, but ultimately the problems mentioned earlier. No one expects the government revenue collection. I pile on debt Now, the symptoms of Greece began to occur in other Member States. Into the PIIGS countries, that is, Portugal, Italy, Ireland, Greence and Spain it.

Do not forget that the euro is not the same as using the US dollar. For these countries, the European Union's debt. Debt incurred it with the Member States. But the United States does not like. The liability of the state is all federal. The federal government is responsible for controlling the exchange rate and interest by local governments act in the management of the budget. Therefore, the management of the economy is going to solve the problem is over. Greece's problem now is not directed at any rate. Could only borrow money to offset the budget deficit cuts the cost to finance the state back to health in the same way as other Member States only. And hopefully the economy will be better. (The Competitiveness and export), that is why England did not want to join the euro. Due to loss of control of monetary policy. I do not Greece That Greece will do now. Is to treat the cause of it. That is to increase the competitiveness of the country. But in short times I could only increase the income of the dominant services sector in Greece and the resource exists. The tourism industry As a way to return control of the financial instruments is the exchange rate. But the process is out of adopting the euro at all or not. The answer would be to wait for the next post.