Economic issues
Greece Financial Crisis
Currently Greece has recently been in crippling debt due to buildup and worsening of their economy since they were shut out from borrowing in financial markets. Multiple international bailouts from the International Monetary Fund, the European Central Bank and the European Commission provided funds to aid Greece with their economic problems. The lenders came with conditions for the bailouts requiring tax increases, budget cuts, harsh austerity terms, and to take apart their economy to make it easier to do business, streamlining the government. Though the funds were to stabilize their country economically-wise but failed to do so shrinking their economy. The funds were used mostly for paying of international loans making Greece's situation worse. Some effects today of this crisis in Greece are the economic downfall with wage and pensions cut, shops shuttering, loose relationships between Europe and other ties with foreign countries, weakening the structure of Europe.
Sustainability
Economic sustainability is the ability of an economy to support a defined level of economic production indefinitely. Private-sector debt present in Eastern Europe are in danger of limiting growth for future development. Due to poor sustainability, banks are fragile, export growth will slow down/ decrease, and economic constraint that results when money raised through taxes is insufficient to pay for all the services that a city needs to function.
Suffering banking system
Eastern Europe is in deep recession in banks leaving the country's people with lots of debt. Many western banks are exposed by the high level of debt which has become a problem in likewise situations of borrowing loans that has affected many eastern European countries like Latvia, Hungary and Poland . The heavy borrowing from western banks were the main source of Eastern Europe's boom which was a surge of economical prosperity and expansion for jobs and companies. Though this boom lasted for not a very long time later leading up to adding onto the international debt of Eastern Europe effecting Europe to have little credit, unemployment, currencies decreasing in value, and a struggling economy.
Currently Greece has recently been in crippling debt due to buildup and worsening of their economy since they were shut out from borrowing in financial markets. Multiple international bailouts from the International Monetary Fund, the European Central Bank and the European Commission provided funds to aid Greece with their economic problems. The lenders came with conditions for the bailouts requiring tax increases, budget cuts, harsh austerity terms, and to take apart their economy to make it easier to do business, streamlining the government. Though the funds were to stabilize their country economically-wise but failed to do so shrinking their economy. The funds were used mostly for paying of international loans making Greece's situation worse. Some effects today of this crisis in Greece are the economic downfall with wage and pensions cut, shops shuttering, loose relationships between Europe and other ties with foreign countries, weakening the structure of Europe.
Sustainability
Economic sustainability is the ability of an economy to support a defined level of economic production indefinitely. Private-sector debt present in Eastern Europe are in danger of limiting growth for future development. Due to poor sustainability, banks are fragile, export growth will slow down/ decrease, and economic constraint that results when money raised through taxes is insufficient to pay for all the services that a city needs to function.
Suffering banking system
Eastern Europe is in deep recession in banks leaving the country's people with lots of debt. Many western banks are exposed by the high level of debt which has become a problem in likewise situations of borrowing loans that has affected many eastern European countries like Latvia, Hungary and Poland . The heavy borrowing from western banks were the main source of Eastern Europe's boom which was a surge of economical prosperity and expansion for jobs and companies. Though this boom lasted for not a very long time later leading up to adding onto the international debt of Eastern Europe effecting Europe to have little credit, unemployment, currencies decreasing in value, and a struggling economy.