After having experienced an economic boom at the beginning of the 2000s subsequent to the admission to the Eurozone, which had been however mainly driven by low interests on financial loans to the private and the public sector, Greece became de facto insolvent in 2010. In the aftermath of a global financial, banking and economic crisis, the country’s public finances became problematic to an extent at which private investors were only willing to lend money to Greece at interest rates which it could no longer afford to pay.
An official bankruptcy could only be prevented by a financial rescue programme granted by the other Eurozone members and the International Monetary Fund in May 2010, giving bilateral credits summing up to 110 billion Euros in order to service existing debt.
The bailout programmes were granted on the condition of a “cash for reform approach”. One objective of this approach was to create economic growth and new jobs in the country afflicted by high unemployment rates for decades. Many economists however stated that Greece could only sustainably overcome its economic and public debt crisis if the country was to become more attractive for Foreign Direct Investment (FDI).
Table of Contents
Introduction – The sovereign debt crisis in Greece, the bailout programmes and structural reforms
Foreign Direct Investment – A driver for economic stability, growth and jobs
The Greek paradox – profound structural reforms and more budget discipline but less FDI
Political and economic reasons for regressive FDI in Greece
Political and economic implications for the future of Greece
Bibliography
- Quote paper
- Benedikt Weingärtner (Author), 2017, The Odyssey continues. Why has Foreign Direct Investment in Greece not increased despite the structural reform programme of the country?, Munich, GRIN Verlag, https://www.grin.com/document/373596
-
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X.