When the Greeks invented the word “crisis” little did they know that towards the latter part of 2009 they would be experiencing a major debt crisis that would make international headlines. Greece is a part of the Europe region as well as a member of the European Union organization (European Union 2012). Greece along with other countries such as Portugal, Italy, Ireland and Spain were affected by the European Recession (The Economist 2006). Greece is currently facing a debt crisis starting from the year 2010; this resulted from a combination of national and international factors (Wearden 2010).
The main aspect of the Greece debt crisis is that it happened over a 10 year span. As Greece had joined the EU, they were given the same rights and benefits as other EU countries. One of the functions of the EU is to aid its members in improving their countries. Aside from the Greece government borrowing for aid, allegations surfaced that the government had falsified statistics and attempted to obscure debt levels via complex financial instruments. Thus contributing to a decline in investor confidence . The factors that have caused the Greece debt crisis are government public debt, weak financial system and tax evasion. The Greece debt crisis has had a huge impact on other countries in the European Union.The objectives, research questions and hypothesis are listed below.
1. To investigate the causes that led to the Greece debt crisis.
2. To determine the effects on other European countries during the Greece debt crisis.The research questions:
1. Has the government public debt led to the Greece debt crisis
2. Has the weak financial system led to the Greece debt crisis
3. Has tax evasion led to the Greece debt crisis
4. Has the Greece debt crisis effected other European countries – Portugal, Italy , Ireland, Spain
Hypothesis TestsHo : Tax evasion has not…