1. Δήμητρα Παππά 2494 Group Leader Μαρία Αποστόλου 2339 Χριστίνα Νάκα 2475 Παναγιώτα Χριστοδούλου 2562 Κ. Εισηγήτρια: Θεοδώρα Τσελίγκα

2. SECTIONS: 1. Introduction 2. Greek economic crisis 2.1. Greek/ World economic crisis 2.2 Impacts of Greek economic crisis 3. Greek crisis and public sector 3.1 The public sector in Greek economy (significance) 3.2 Impacts of crisis in public sector 4. Future Prospects 5. Conclusion

3. 1. Introduction The financial crisis that erupted in the United States in September 2008 “hit” crucial the economies of many countries around the world. Each country has experienced or still experiencing the financial crisis differently depending on the structure of the economies. Soon the financial crisis transformed into an economic crisis when banks in their effort to maintain their capital adequacy restricted the credits to businesses and households.

4. 2. Greek economic crisis The international financial crisis struck soon the Greek economy and Greece fled to the IMF, the ECB and the EU in order to avoid any problems relating on wages which would have uncontrolled consequences for the entire euro zone.

5. 2.1 Greek economic crisis Regarding the Public debt the period after 1974 was a large lending period for Greece that led the debt to its swelling. Decades1970-19791980-19891990-19992000-2009 Consumption as % of GDP 77,285,190,188,8 Investments as % of GDP 30,72320,622,6

6. 2.2 Greek economic crisis Additionally the external debt of Greece was 82,5% of GDP in 2009.The negative trade balance means that Greece imported more than it exported. Decades1990-19992000-2009 Trade balance as % of GDP. -10,7-11,4

7. 2.1 Greek/World economic crisis The global economic downturn of 2008 is the effect caused by the international financial crisis of 2007.The international financial crisis caused by the lack of liquidity became apparent in the Stock market indexes all around the world with dramatic effects on the banking system, trading and businesses. On October,24,2008 there were losses $3,2 trillion in Eurasia. Especially, in Greece there were losses 24 billion Euros in the second half of 2008.The Athens general stock market index fell below 1800 points.

8. 2.2 Impacts of Greek economic crisis Liquidity problems in banks,companies Reduction of turnover High rate of unemployment Reduction in production in national income etc Bankruptcy Low public revenues High debt levels High deficits

9. 3.Greek crisis and public sector The public sector of Greece consists of various public entities which are responsible for the governance of the state, to serve and protection of citizens and the conduct of fiscal policy in Greek economy. The Greek economy for several decades was rising. From 1950 until 1970,the development named as the Greek economic miracle.

10. 3.Greek crisis and public sector The economy sank into deep and sharp recession in 2008 due to the global economic crisis struck the euro zone and Greece as a member state. Finally, there are still hopes for quick recovery in Greek economy.

11. 3.Greek crisis and public sector

13. 3.1 The public sector in Greek economy

14.  Since crisis expanded in Greece the wages of many public employees have decreased in half.  At the same time, other public employees have been fired the last period because government can not ensure them salaries of a satisfactory.

15. 3.2.1 Impacts of Greek crisis in public sector  Moreover, from 2009 and after the budget is deficit. Thus, the public expenditures have been reduced and the taxes have been increased to the public.  Also, government borrows from external banks but that money are abused from public officers.  In the end government is selling off public property.

16. 3.2 Future prospects  The deficit in 2009 as a percentage of GDP is 15,9, in 2013 drops to 5,5 and today is about 4,6 so it is obvious that there is a reduction during these periods.  Moreover government can manage to balance the budget,create primary balance and remained in euro.

17. Conclusion  The economic policies of the last three decades have brought Greece to the brink of bankruptcy. Thus Greece is characterized by inefficient public sector and low competitiveness. However the positive point is that there are bands for furthermore development and progress. So Greece can manage to overcome the crisis, to consolidate the public sector and get out again on international markets if there is a consent of all both governments and citizens.

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