Greece Economic Crisis
Current Event: Grace’s Economic Crisis The macro economic environment has critical implications for corporate finance. The current economic crisis in Greece is having profound affects not only on the government and companies in Greece and Europe, but across the globe from the United States to Japan. Largely as a result of Grace’s massive public debt, the Euro has fallen 4. 8% against the US Dollar and 7. 9% against the Japanese Yen. There are growing concerns that the mounting crisis in Greece and potential problems in Spain ND Portugal are going to result in continued downward pressure on the Euro.
The crisis in Greece present a real test for the European Central Bank and its ability to respond and possibly dictate national budgets. Greece when compared to the rest of the European Union countries has high barriers to economic investment and as a result has one of Rupee’s lowest direct investment per capita. The Greek economy is plagued with corruption, nepotism, and is only one of two countries, the other is Albania, that does not have a centralized computer land registry.
This has resulted in private citizen occupying public land and eventually collecting agricultural subsidies. Currently, farmers have been blocking roads along
Need essay sample on "Greece Economic Crisis"? We will write a custom essay sample specifically for you for only $ 13.90/page
The European Union Central Bank and EX. leaders have had several meetings in espouse to the Greek crisis and have said that there needs to be closer monitoring of the Greek economy, but have not gone into specifics. US and European markets have been responding negatively to the issue of Greeks massive public debt and there are concerns on potential ramifications off EX. bailout for Greece. E Energy Commissioner Gunter Tinnier said, “EX. states must start reducing their deficit in 2011. If they refuse, the stability pact must be changed to allow European authorities to intervene better in national policy.
The stability of the Euro must be guaranteed. It will be interesting to watch the developments within the EX. to see if the EX. Central Bank is given greater power to dictate national budgets to member nations. Discussion Points: There has been mounting concerns and frequencies at which countries are being saddled with huge public debt. Iceland, Ireland, Dubbed World and now Greece is in real financial trouble. What does these mean for world markets and the US with out large public debt? Who is next, Spain or Portugal? What does the devaluation of the Euro mean for Americans?