ASSIGNMENT ID
1013647
SUBJECT AREA Arts entertainment
DOCUMENT TYPE Essay
CREATED ON 27th March 2018

Article on Greek Withdrawal in the Eurozone

Months of negotiations on extending Greece's cash-for-reforms deal with the eurozone have collapsed, therefore the Greek Parliament ran out on 30 June and Alexis Tsipras's authorities failed to earn a key debt repayment to the IMF. The European Central Bank (ECB) has stated it will not extend emergency financing for those banks and there is a growing threat of Greece leaving the only currency. How in the world did it come to this? Overdue in 2013 Greece's public debt was estimated at 171.8 percent of gross domestic product (GDP) (ANSA, 2014), advancing the Greek debt meltdown that's been rising since before the economic crisis of 2008. The stark reality is that this debt crisis could finally have a domino effect throughout the European Union (EU), together with similarly higher debt to GDP rates in Italy (132.9 percent), Portugal (128.7 percent), and Ireland (124.8 percentage) (ANSA, 2014). The Greek debt crisis, and the international financial reaction led by Germany, has had an impact on the euro, the Eurozone, the European Union, and other markets in Europe. This paper will assess the effects and causes of the debt crisis, and options for the solution to the debt crisis and its own after-effects about the Eurozone and the European Union. Greece's Commitments into the European Union Greece was admitted to the European Union in 1981 (European Union, 2014) following ratification of this 1979 Treaty of Accession of the Hellenic Republic (Greece) (1979), also adopted the euro as its currency in 2001 (European Union, 2014). Like every other EU member, the treaty of accession obligates Greece to adhere to the needs of the EU created by the Treaty of Rome (Treaty establishing the European Economic Community, 1957). However, after a country becomes a member...

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