Time Sep

(Jeff_L) #1
9

AFTER EIGHT YEARS OF AUSTERITY AND
European inancial support Greece oicially
exited its third bailout program on Aug. 20.
For the irst time since 2010 the country can
“stand on its own” according to the chair of
the euro-zone bailout fund. “This is a day of
liberation” said Greek Prime Minister Alexis
Tsipras emphasizing that Greece must not
forget the lessons of the crisis. But after years
of political and social upheaval starting
afresh isn’t so easy.


DEEP IN DEBTThe global inancial crisis
of 2007–08 hit Greece hard. In 2010
the country revealed that it was running
a deicit of over 14% rather than the 4%
it had misreported. Lenders’ conidence
plummeted. With creditors unwilling to
keep the country ticking Greece was forced
to request emergency loans from the E.U. the
European Central Bank and the IMF. Those
bailouts amounted to some $360 billion—
the largest inancial assistance package in
history—and came with the condition that
Greece would reduce welfare spending
embark on privatization and increase taxes.


STATE OF RUINAs Greece tried to prevent
itself from falling into bankruptcy its
citizens sufered. The economy has shrunk
by more than a quarter since 2010 and
unemployment—which hit 28% at the peak
of the crisis—is still at 20% (the euro-zone
average is 8%). Youth unemployment is
about 40% and many jobs are temporary or
low-paying.

BLEAK FUTURE Greece’s reliance on
bailout money is over and its economy
grew 1.4% last year. But it now faces the
challenge of paying back its loans. The
conditions imposed by creditors aren’t over
yet: they require that Greece run a budget
surplus of 3.5% of GDP until 2022 and
then an average of 2.2% until 2060. So the
government has been forced to raise taxes
yet again. Some analysts fear this will stile
growth and risk pushing Greece back into
crisis. Tsipras has promised “prudence and
responsibility.” Despite pressure to improve
the lives of ordinary Greeks they’re unlikely
to see improvements anytime soon.
—BILLY PERRIGO

THE BULLETIN


Greece enters post-bailout era


but has little else to cheer


A man stands at an ATM in Athens. On Aug. 20 the last bailout program for Greece came to an end

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