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CIAO Focus, May 2010: Debt Crisis in Greece

Greece reached agreement with the International Monetary Fund (IMF), the European Commission, and the European Central Bank (ECB) on a focused program to stabilize its economy, become more competitive, and restore market confidence with the support of a €110 billion (about $145 billion) financing package.

Negotiators…wrapped up details of the package, involving budget cuts, a freeze in wages and pensions for three years, and tax increases to address Greece's fiscal and debt problems, along with deep reforms designed to strengthen Greece’s competitiveness and revive stalled economic growth.

In Athens, Greek prime minister, George Papandreou, announced the unprecedented deal, meant to shore up Greek finances with decisive upfront measures and prevent a crisis of confidence from undermining the Greek economy and spreading to other members of the eurozone and elsewhere. The measures, representing a break from the past, aim to bring Greece’s public finances under control and modernize the Greek economy.

--International Monetary Fund


From the CIAO Database:

Adjustment Difficulties in the GIPSY Club

Foreign Trade Specialization and International Competitiveness of Greece, Portugal, Spain, Turkey and the EU 12

Is Greece heading for default?

How Did the 2008 Economic Crisis Affect: Social and Political Solidarity in Europe?

CIAO Atlas: Greece


Outside Sources: *

Greece Debt Crisis (Financial Times)

Europe’s Test—What Greece’s Debt Crisis Means for the World (Carnegie Endowment)

Greece debt crisis: timeline (The Guardian)

World Bank Dialogue with Greece

* Outside links are not maintained. For broken outside links, CIAO recommends the Way Back Machine.