2. The Greek debt crisis Part of an ongoing Euro zone crisis Caused by the Global Economic Recession (Great Recession) in October 2008

3. Causes of the Greek debt crisis GDP growth rates lower than anticipated Government deficit with huge fiscal imbalances Government debt level Budget compliance Statistical incredibility

4. TAX EVASION Tax evasion has always been a problem for the Greek Government. “BLACK MARKET” Greece: 24.3% of GDP Estonia :28.6% Latvia : 26.5% Italy: 21.6% Belgium: 17.1% Germany:13.5%

5. Transactions between Greek government and Goldman Sachs In order to keep within the Monetary Union guidelines, Greece misreported the country’s economic condition. In 2010, the transactions between Greece and the Goldman Sachs bank were revealed proving that Greece was hiding the debt.

6. Greece had to face a double problem: 1.Increasing debt level  “interest rate death” 2.Fundamental problem  structural imbalance in the national account

8. THE GHOST OF THE NEW DRACHMA Would the introduction of a national currency help pull the Greek economy out of recession? The banking system is highly affected by all exit strategies