Greece’s economy currently does not have a strong standing. Regarding the fact that UNC’s Center for International Education has a student program journeying to Athens this coming summer, the crisis occurring in Greece is of high concern.
The socialist party in Greece took control of the government in October and Prime Minister George Papandreou said he is determined to cut the budget deficit, assist the nation’s poor citizens and help the country recover its lost credibility. The government anticipates the public debt to increase from from 2009’s rate of 113.4 percent of GDP to 121 percent, yet the European Union predicts the rise to reach 125 percent. Either way, the debt crisis will still be the most severe in the EU.
President Obama wants to raise the amount of U.S. exports over the coming years. But this goal will be difficult if Greece’s debt is not contained. If things get worse in Europe, the strength of the dollar will rise in relation to the euro, in turn making exports more expensive. Therefore, Greece’s financial problems have the potential to weaken the euro and cause the amount of U.S. exports to fall, causing issues for America, as well as Europe as a whole.
Further and more urgently, destructive riots have recently broken out in the streets of Athens – something that is recurrent every few years – as nearly 60,000 people protested the cash-strapped government.
Greece’s financial concern currently takes a backseat to the safety issue that UNC’s CIE department has to consider.
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