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Greek Bailout Issue Essay


The ongoing financial meltdown in Europe has influenced negatively the lives of Greeks. Many people have closed business due to inability to sustain them financially. The government on its part is facing many challenges ranging from internal economic instability to sustaining inter-governmental projects within Europe and in other parts of the world.

Above all, pressure is mounting on government to step up and intervene in order to restore normalcy as well as constancy in the financial system. In real sense, the government does not have enough funds to assist all crippling businesses within the state. A number of reasons are always considered before the state interferes with the economy. Greece is a great proponent of free market economy, popularly referred to as lazier faire.

The state is weighing options before it takes corrective measures. A big problem is how and who to bail out because not all businesses are undergoing financial turmoil. In fact, some are doing very well since they are taking the advantage of high prices. Such businesses usually have low production costs; they are local firms that do not specialize in certain products.

The government is really struggling to get into the matter; this is evidenced by its move to invite EU officials to assess the extent of the disaster. There is high possibility that the government will act after the EU officials are through with their mission.

The EU on the other hand has noted that the Greek financial problems are not restricted to their local markets alone but a matter that affects the whole union. World Bank and other monetary regimes such as the International monetary fund are expected in Athens very soon to evaluate the current situation and advice relevant authorities on the way forward.

The Greek government however is trying hard to restore its financial grip by borrowing locally as it awaits foreign assistance. The government cannot sit back and watch the economy deteriorate even if it believes in the policy that the market is self-correcting and regulating. In case the economy collapses, the government stands to lose much because people will be laid off and many will evade payment of taxes.

The government fears that in case the tragedy goes on, crime rates will definitely go up and more funds will be spent in containing crime and other effects of crime. Although the government is in need, its relations with other states cannot be compromised in any way. For instance, the state cannot bend low to other states by giving in to their demands and wishes in order to receive foreign aid.

This is one reason why Greece is depending on the union since EU is a body that represents the interests of all members uniformly. No member within the union is powerful than the other even though in real terms some members are more influential.

Conversely, regional blocs, such as the EU are known to contribute little to the welfare of states since they have little resources and inadequate work force to deal with problems. The EU operates as directed by the member states implying that there is no way it can function without approval from all states.

Greek scholars are accusing unnecessary politics as solely responsible for delays in solving economic problems. The crisis has generated a new class of people in Europe. Many people go without some basic needs because their pockets cannot sustain them anymore. The scholars observe that the government needs to restructure to come up with an efficient bureaucracy.

The citizens are taxed beyond their limits in order to cater for government services. Scholars observe that this is interfering with the social structure because some members of the society are forced to take up or perform roles that are not theirs.

The government is forced to tax citizens heavily and drop important development projects to sustain a bloated government. Indeed, this are some of the demands the world monetary regimes will demand before cooperating in restoring the economy. The case of Kenya serves a living example. The Moi regime was forced to open up by adopting western capitalist model and drop some socialist policies.

This demanded a lean and clean cabinet as well as giving freedoms to people. The ruling socialist party in Greece can be requested to adopt modern economic aspects and drop socialist ideas, especially the spirit of collectivism.

Greek problems seem to be unending because the political climate at home is hostile such that the ruling party cannot come up with sound policies for solving the crisis. Local politicians are opposing the president’s move to formulate and implement long-term policies that can provide lasting solutions to financial problems.

The ruling party is divided over the president’s idea, which has complicated the whole issue of bailout. Without state intervention, the costs of living can sky-scrap to a level that no citizens can withstand. The EU therefore should come to the rescue to Greek government to avoid more problems.

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IvyPanda. 2019. "Greek Bailout Issue." May 20, 2019. https://ivypanda.com/essays/greek-bailout-issue-essay/.

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IvyPanda. (2019) 'Greek Bailout Issue'. 20 May.

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