Britain and the Euro Zone Essay Example | Topics and Well Written Essays - 1000 words

Britain and the Euro Zone - Essay ExampleEconomically, Greece is ranked 32nd largest in the reality at around 312 billion U.S. dollars by nominal gross domestic product going by world bank statistics for the 2009-2010 financial year. Greece is ranked the fifteenth largest economy in the European Union, an organization that has 27 members. Greece was formally admitted, in June 2000, as a member of the Economic and Monetary Union of the European Union, ordinarily referred to as the Euro Zone.Amid reports of deliberate financial accounting records manipulation and misinformation practices, Greece has been subject to the worst crisis since 1974 (Lynn 2011). The Greece government revised its prediction of deficit from 3.7% to 12.7% of the GDP in 2009. In whitethorn 2010, the governments deficit rose to a whooping 13.6% of the GDP on e of the worlds highest. In November, 2010, Greeces government deficit was estimated at close to 15.5% of the countrys GDP, public debt being set at close t o 127% of the GDP (Ingrid and Papchristou 2009). Effectively, this is the largest deficit amongst the European Union member countries. As a result of this situation, international confidence in the countrys ability to pay back its debts got into a serious crisis.Following Greeces deplorable and low situation, the International Monetary Fund and the European Union offered an austerity package much to the fury of the Greek nationals. The situation has further led to public hullabaloo and riots (Charter 2010). The European Central Bank in a bid to lift Greek back to its feet released a bailout package aimed at lowering the countrys public debt mountain (Lynn 2011 Castle and Ewing 2012). The measure was instituted after a balance was struck between the central banks adherence to EU laws and luck depressed EU governments. EU law forbids the central bank from offering monetary financing to the governments. In respect of the same, the ECB