The document discusses the Greek financial crisis that began in 2010. Political problems like unrestrained government spending and failure to implement reforms, as well as economic issues such as a high budget deficit and national debt, led to the crisis. This negatively impacted Europe's credibility in financial markets. Proposed solutions included austerity measures by the Greek government to reduce the deficit through tax increases and spending cuts, which led to public protests. The eurozone and IMF also implemented two rescue packages to help Greece.

1. Greece Political and Economic
Problem, and Ways of Solution
Presented by: Mohamed Atef Mahmoud
9104657
Presented to: Dr. Bassem Roushdy

2. Outline
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What is the Greek Financial Crisis ??
Political Problems Led to the Crisis
Economic Problems Led to the Crisis
The Crisis’ Effect on Europe
Ways of Solution

3. What is the Greek Financial Crisis ??
• The Greek Financial Crisis happened around the
beginning of 2010. It happened as a consequence of
the global economic downturn struck.
• Increasing the public debt with high rate
• The Budget Deficit has reached more than 14 %
• National debt was about €300 billion

4. Political Problems led to the crisis
• Years of unrestrained spending, cheap lending and
failure to implement financial reforms under the lead
of the New Democratic Party left Greece badly
exposed when the global economic downturn struck.
• Inability of the government to borrow from the
market as it will have to pay high interest rates to the
investors due to their worry of payback ability.

5. Economic Problems led to the crisis
• Greece had economic problems before joining the
Eurozone.
• Controlling the public expenses.
• Joining the Eurozone encourages Greece for more
problems!
• Inability of the national banks to borrow due to the
lessen of their debentures’ value

7. The Crisis’ effect on Europe
• Greece is already in major breach of euro zone rules
on deficit management and with the financial
markets betting the country will default on its debts,
this reflects badly on the credibility of the euro.

8. Ways of Solution
• the government has has implemented austerity
measures aimed at reducing the deficit by more than
€10 billion.
• It has increased taxes on fuel, tobacco and
alcohol, imposed public sector pay cuts and applied
tough new tax evasion regulations.
• The governmental austerity measures led people to
make several strikes and protests

10. Ways of Solution
• Led by Angela Merkel, the euro zone with the
IMF have agreed a rescue plan for their ailing
neighbour.
• First Rescue Package (May 2010 – June 2011)
• Second Rescue Package (February 2012)

11. Thank You