What exacerbated the Greek government into the huge debt?

Shunya Asano

              Strong economic European Nations such as Germany first hesitated to rescue Greece. However, when they realized this problem will be one of the hardest and obliterate the currency and credibility of the European Union, developed countries in European Nations started to provide financial aid to Greece. Furthermore, European Central Bank and IMF which is one of the most famous specialized agencies also supported finance to Greece in 2010, and the amount of financial aid was approximately 1100 hundred million euro. They also provided 7500 hundred million euro and established the Euro Defense Fund which is aimed to alleviate the next financial crisis (Odawara 52). This movement indicates implicitly that ECB and IMF deem there will be next financial crisis in Europe. Nevertheless, the main point is that why the Greek government was hiding the debt until they confronted huge economic crisis.

              It is estimated that Greece’s desire of participation to the European Union is the crucial reason why the Greek government hided their financial debt. European Union is organized by 27 different countries. In addition, 16 out of 27 countries actually implemented euro currency, and it is predicted to expand the euro currency nations more. European Union allows countries and people to intertwine and exchange products, natural resource, security, economy, diplomacy, and nuclear power plant freely and without any obstacles such as tariffs, passport, and customs house. All these processes will produce more profits and transportation efficiency. The remarkable point is 70% of the Greece’s Gross Domestic Products relies on tourism benefits. Moreover, Greece also depended on investing money and finance from foreigners approximately 70% of their entire budget (Odawara, 67). Therefore, participation of the European Union is absolutely crucial for political and economic movement.

              On the other hand, this participation of European Nations actually undermines and hampers the Greek government decision since European Nations are connected strongly. For example, when the Greek government attempted to reduce the interest of their government bonds for stimulating their own domestic economy, they were unable to operate controlling their government bonds because European Central Bank is the organization to make a decision whether they can raise the interest of their government bonds or reduce the interest. In addition, the government was often paralyzed by this disability, and it is possible to regard that the Greek government was suffering by participation of European Unions.

              It is also important to mention about whether Greece will stay in the European Nations or leave the European Nations. According to Institute for International Monetary Affairs, 54.5% of Greek citizens supported that Greece will eventually leave the European Nations, and 45.5% of Greek citizens supported that Greece will stay in the European Nations in the future. This statistic explicitly indicates that Greek citizens know that they are actually suffered from the European Nations. Moreover, according to this affair, one of the most crucial reason why Greek citizens thought they should leave from the European Nations is about the inferiority of international competence. This means that even Greece stays in the European Nations, citizens are sure that Greece will damage them since they have infirm international competence.

              It is obviously important to notice that the situation in Greece is connected with the world economy. Therefore, we, Japanese students, should also focus and pay attention what is going on in Europe.

Works Cited

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.

“Kokusai Kinyu topikkusu.” Institute for International Monetary Affairs. 5 June. 2012. Web. 1 July. 2012.

Roumeliotis, Greg. “Blackstone president: Oust Greece from euro.” Yahoo News. 29 June. 2012. Web. 1 July. 2012.