Greece's Financial Crisis

Greece’s financial crisis began around 2009, mainly due to excessive government debt and borrowing beyond its means. When global financial markets tightened, Greece struggled to repay or borrow more, leading to fears of default. This caused a loss of confidence, rising borrowing costs, and economic contraction. As a result, Greece agreed to strict bailout programs from the EU and IMF, which included austerity measures like spending cuts and tax hikes. These measures worsened the economy temporarily, leading to high unemployment and social hardship. The crisis highlighted the difficulties of balancing financial stability with economic growth in a complex monetary union.