Greece almost went bankrupt in the year of 2015. The migrant crisis is merely the latest problem for the Eurozone’s most vulnerable economy.
CCTV’s Filio Kontrafouri reports from Greece.
Follow Filio Kontrafouri on Twitter @filiopk
Greek government may implement more austerity measuresAnd Greece almost went bankrupt in the year of 2015. The migrant crisis is merely the latest problem for the Eurozone’s most vulnerable economy.
The United Nations says the number of migrants arriving in Europe by sea alone this year has topped one million. These people were among 4,000 rescued in the Mediterranean between Italy and North Africa over the Christmas weekend.
The U.N. thinks nearly 4,000 people have either died or gone missing trying to make the journey.
First time leftist, anti-austerity government that led to a bitter standoff between Greece and its creditors for the first half of 2015. Capital controls were imposed, the country’s exit from the Eurozone became a possibility once again and in the end PM Tsipras was forced to sign the country’s third bailout agreement.
In theory, 2016 should be a smoother ride. The government has begun implementing the country’s third bailout and money is flowing into the country. And Athens seems prepared for another big battle with its European partners and the International Monetary Fund.
Greek banks have been recapitalized after a month-long forced shutdown in the summer, with the European Central Bank estimating that the damage from capital controls has been less than initially predicted. Still, banks are restricting withdrawals and Greeks can only get 420 euros each week.
Most other transactions, like transferring money out of the country are still forbidden.
As of the political instability during 2015, it is still lurking for 2016. The Syria-led government is plummeting in polls and it relies on an ever-slimmer majority in parliament that in the coming months will be tested to its limits. The government will be have to pass some extremely unpopular legislation required by Greece’s lenders for the release of more aid, like further slashing pensions.
Constance Baroudos on Greece’s economy
CCTV America’s Owen Fairclough interviewed Constance Baroudos, the Policy Analyst and Program Director of Lexington Institute on the status of Greece’s economy.