However the pros outweighed. Joining the Eurozone in 2001 was fraught with problems , notes Kvashnin. Immediately after it, there was a big spike in inflation in Greece. This happened due to the fact that prices in the country, lower than in most EU countries, increased with the transition to the euro. In the first year after joining the Eurozone, there was a credit boom – many Greeks began to take loans in euros, since this currency had much lower inflation, and it was very profitable to take loans, buy real estate on them, re-mortgage it and repeat this mechanism again. It was a time of bubble formation in various markets.
The two parties in power were constantly
Kvashnin notes that these potentially negative effects were Macedonia Phone Number List not noticed by the Greek government due to the fact that in most EU countries in the 1990s and early 2000s there was a time of euphoria. The European economy was growing fast enough, and it seemed to the political elites that it would always be so. In Greece,changing – the center-right ” New Democracy ” and the center-left movement ” PASOK ” (the abbreviation stands for “Panhellenic Socialist Movement”). Their functionaries did not look beyond two electoral cycles, each for four years, emphasizes Kvashnin. The role of the global crisis of.
Would have managed to solve the Greek
There were many external and internal prerequisites USA CFO for the crisis within Greece, Kvashnin notes. However, in his opinion, if there had been no global financial crisis, the consequences would have been much less significant, and the EU problem in the bud. In 2008, the debt crisis that began in the United States affected not only Greece, but also a number of other countries – Portugal, Ireland, Italy and Spain. Because of this, investor confidence in the economies of these troubled countries has declined sharply. Even the abbreviation PIIGS appeared – after the first letters of the five countries listed above with high public debt and irresponsible.