The Greek Crisis: Responses from Greece and from Europe
The Greek Crisis: Responses from Greece and from Europe

Summary/Abstract: A full decade has passed since the Greek economy started shrinking; eight years since the first-ever bailout of a member-state of the European Union; six years since the largest debt haircut in history; and two years since a disastrous referendum almost cost Greece its place in the Eurozone. Greece’s former finance minister (2009-2011) highlights the reasons that led to this development, the obstacles encountered along the way and the outlook for the country in the years to come. While major budgetary and structural adjustments have been achieved, the challenges Greece continues to face are numerous, including its momentous sovereign debt, the trust deficit vis-à-vis its European partners and ongoing domestic political polarization. Papaconstantinou argues that for Greece to generate growth, jobs and prosperity for its citizens, it needs to change dramatically in order to attract foreign investment which is the binding constraint in a country with a very low domestic savings rate and a moribund banking sector.

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