Though Greece is a relatively small country, their economic failure has had a worldwide effect on other nations.
This is because Greece is a part of the European Union (EU), and their meltdown would ruin the EU’s reputation, and if the EU fails, it will severely hurt the economy here in the United States as well.
Greece’s economy collapsed after the government’s constant bad habit of reckless borrowing and spending.
Greece has endured this financial collapse since January 2010, and the country is now riot-ridden instead of fully recovered.
It’s 2012 now, and Greece has been going through a constant amount of rioting, courtesy of the angry Greek citizens.
What has the EU done since 2010 to save Greece? Not enough.
The EU attempted a bailout, but required the government to cut their spending, which makes sense, but with the cuts being too severe, the Greek citizens have suffered even more.
Though the EU hasn’t given up on Greece, their plans put Greece under too strict a budget that ultimately hurts the Greeks. It’s a budget that Greece can’t even produce at the moment.
Of course, Greece is the primary country to blame because of their poor habit, but the EU needs to understand that it’s their reputation on the line if Greece’s collapse gets any more drastic.
The EU is looking at trying to fix the crisis and the underlying problem at the same time, which can’t happen in this situation.
It seems best for the EU to bail the Greeks out first, and then once the crisis at hand is resolved, they can begin to look into the Greek financial problem and fix what needs to be fixed.
For the EU, it’s unfortunate that there’s no two ways about it: To save Greece, themselves, and the world economy, they are going to have to spend more money for a problem they have ignored for far too long.
It won’t be easy, but fixing a problem this big isn’t supposed to be.