Question

In greece, austerity measures undertaken to bring down the national debt triggered street demonstrations in 2011. how did later events play out?

Answer 1

In the year 2011, a second bailout was agreed between the European Union and the Greek Government. Private creditors had initially agreed to take a cut of 21% on the Greek Debt they had acquired in the form of bonds. However, European Union Officials stated that this was not enough in order to really aid the Greek government. Private investors ultimately agreed to accept a cut of 50% on their Greek debt bonds.

Nevertheless, all of these efforts proved to be insufficient as the IMF (International Monetary Fund) had to extend an additional loan to Greece in the year 2012.

Answer 2

Greece needed bailouts on debts owed. Reactions against austerity programs continued.

In 2012, banks agreed to accept just 26 cents for every dollar owed. French and German banks were key players in this action. There was concern that a complete default of the Greek situation would damage confidence in the European Union economy as a whole. There were other vulnerable, indebted nations also. There were continued internal political struggles regarding how much "austerity" (tightening of budget) the Greek government could handle. By 2015, Greece was still struggling. By this time, there was less willingness to provide debt relief to Greece, but Greek voters in a national referendum strongly rejected a bailout program that was offered that had strict terms. Further negotiations provided yet another plan. Greece continues to struggle financially. As of January 2018, the Greek parliament agreed to another round of austerity measures.