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Greek Credit Crisis

In: Business and Management

Submitted By pbash
Words 1919
Pages 8
Broken Promises:
A Classic Greek Tragedy

Presented by “Prestige International”
Ana Maria, Atty, Patrick and Tom
Professor Dr. Bonnie Woodson
T-TH 11:10am
“Within hours of taking office government officials said they would stop the planned sale of the state’s majority stake in Greece’s largest port and dominant utility. They also pledged to rehire thousands of public-sector workers and reopen the country’s state broadcaster, which has been shut down by previous government.” - Bouras & Karnitschnig (Wall Street Journal, 2015)

A beautiful European country on the Mediterranean, Greece was living on borrowed time. Since gaining independence from the Ottoman Empire in 1832 Greece has spent more than half its years in default. For generations the Political system in Greece has been driven by public service jobs. Politicians regularly handed out favors in the form of government jobs to attain votes. They also made working for the state an attractive proposition with better wages than the private sector and retirement after 25 years of service. This effectively meant that if you started working after completing university you could retire before the age of 50. This is a clear example of country club style leadership. In recent years the promises made by new political leaders led some to believe that change may have been on its way and Greece could be on the road to economic recovery. As it turns out the new promises of a new government were broken, just like those of previous administrations. Continually the world finds misguided leadership in Greece. Politicians focused on appealing to Greece’s citizens short term happiness in attempts to earn political favor rather than addressing the more important task of developing a plans to avoid bankruptcy, lower its debt ratio, and stabilize its economy. For decades Greece was able ignore these tasks by selling bonds to fund...

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