Original story: 2009
Greece’s economy suffered much as many economies suffered around the world. In October 2009, the Greek government reported to the EU that they were deeper in debt than previously thought. By May 2010, Greece received its first bailout of 110 billion euros. The following year, the government agreed to enact austerity (money saving) measures to create revenue in order to begin payments against the debt. By February 2012, Greece was given a second bailout of 165 billion euros. In November 2012, the Greek government again approves austerity measures. Greece is back into a recession by December 2014. Greece defaults on bailout payments in June 2015. Source: Business Insider: Greek debt crisis timeline
Update: 6/21/16: Another bailout
The EU bailed out Greece again with another 7.5 billion euros. However, Juncker, EU Commission President, stated that Greece must commit to the reforms agreed to. Juncker believes Greece is on the right path to stabilize its financial picture.
Update: 7/13/16: Still struggling after bailouts
Greece is still struggling to secure a brighter future as it weathers the impact of increased migration. Currently, Greece’s debt is 182% of its gross domestic product (GDP). Tsipras is determined to remain true to his ideals as voters’ rejected austerity measures encouraged by EU officials and accused the EU of stifling the country. In lieu of budget cuts, Tsipras pushes tax hikes and cuts to government employee pensions and benefits in order to meet EU-prescribed targets laid out in the bailout plan. Opposition political leaders believe these types of financial moves could spark ‘snap elections’ and pass the responsibility to the next leadership cabinet. Source: Ekathimerini: A year after bailout, Greece struggles for brighter fuure
Update: 8/22/16: Fractured
In spite of the bailouts, many Greeks still suffer. The government has been forced to make spending cuts that, in turn, make life harder for ordinary Greek citizens. Greece faces Europe’s highest unemployment level (23%) and extreme poverty has increased seven-fold from 2009 to 2015. People are disillusioned and have withdrawn to their families.
Lenders to the Greek government demanded spending cuts in the public sector and reach a budget surplus by 2018. They also ordered an overhaul of the taxation system. Source: CNBC: ‘Nobody believes in anything anymore’: Why Greece’s economic crisis is not over
The Eurogroup recently met in Brussels and offered Greece some immediate short-term relief for its debt burden.
If all goes to plan, these measures will reduce Greece’s debt burden by one-fifth by 2060.
The proposal also does not give Greece the debt relief it seeks for theimmediate term.
The fund said it would participate in the program if this proves to be the final bailout, if Greece’s debt is deemed sustainable in the long term, and if Greece receives debt-relief measures.
German Finance Minister Wolfgang Schäuble has stated that reforms are aprerequisite for any EU funds, and he is staunchly against debt relief for Greece.
So the epic tug-of-war between Greece and the EU continues as distrust of the EU mounts in Greece. Source: Forbes: Greece’s debt problem has reached a dangerous point