Ab’nġn Zayif Ekonomġk Halkasi Yunanġstan’in Ekonomġk Krġzġ Dġnecek Mġ?
Will the Economic Crisis of Europe’s Weakest Link Greece Receede?

Summary/Abstract: The financial crisis that emerged in the USA in the second half of 2007 quickly achieved global proportions and influenced many countries including Greece. However, when the effects of the global crisis merged with the ongoing unsustainable external debt problems of Greece the effects of both crises were compounded. The inability to diagnose the Greek economy, which is without doubt the weakest link in Europe, and the resultant confusion as to its true status, has played a significant role in this development. In this context, it can be stated that both internal and external factors have a contributing role. In fact, the country‟s 2008 macro-economic indicators reflected the unsustainable status and the revenue earning channels services sector which was the locomotive of the national economy, dried up, resulting in production decreases in agriculture and the industrial sectors. Financial support was provided by the EU and the IMF in response to the crisis that was confronted. Using the financial resources provided an attempt was made to avert the situation and widening of the corporate and financial reform scopes were attempted. In pursuit of these aims; tighter controls, internalization of the grey economy, and provision of various incentives to encourage foreign investment were introduced together with the initiation of dialogues with other countries entrepreneurial corporations and institutions in order to promote the flow of resources into the country from tourism and maritime trade. The Greek crisis has resulted in the increase of discussions of the extent of the effectiveness of EU in the process and the Greek economic administration as well.

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