Economic crisis in Greece

Patrick Hayes will introduce a discussion around the ongoing economic crisis in Greece and what it means for Greece, Europe and the world economy.

Greece owes about €300bn (115% of GDP). Public spending currently stands at 51.3% of GDP and only last October the government had committed to increasing already generous welfare benefits, including raising unemployment benefits from 63% to 70% of the minimum wage. Greece now faces the imposition of severe austerity measures, causing considerable domestic unrest by its heavily unionised workforce, making markets nervous that it’s only a matter of time before Greece fails to meet its debt repayments.

Would Greece emerge faster from the crisis by defaulting on its loans and leaving the Eurozone? Given the current state of Greek industry, is there a realistic alternative to stringent austerity measures? What are the main obstacles in the way of avoiding a new financial crisis and a return to productive economic growth in Greece and across Europe more broadly?