Hellenic Open University Conferences, International Conference on Business & Economics of the Hellenic Open University 2016

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Greek Sovereign Debt & Deficit.Determinants, evolution and effects on the economy. An empirical study with policy aspects
Georgios L. Vousinas

##manager.scheduler.building##: Titania
##manager.scheduler.room##: Solon
Date: 2016-04-23 09:00 AM – 10:45 AM
Last modified: 2016-06-01

Abstract


The present study deals with Greek sovereign debt and tries to shed light on its determinants while examining its evolution and severe impact following the global financial crisis that still plagues the country. This paper considers the Greek debt crisis and the efforts taken to deal with it, a combination of Greek austerity measures and strong financial aid from foreign institutions. It also provides a brief examination of public debt formation in the Eurozone countries, emphasizing in ones with the biggest debt ratios. The empirical analysis stresses that, even if the macroeconomic assumptions underpinning the fiscal adjustment program prove realistic and effective, the financial situation of the public sector will remain fragile and has a long way to run. Simultaneously, the enigma of a viable solution to the fiscal problem of Greece won’t be solved unless long term and permanent measures are engaged in order to address the long-standing weaknesses of the economy. It is also pointed out that a stable political and economic environment must be ensured alongside with the attraction of investments and world cooperation.


Keywords


sovereign debt, deficit, adjustment program, debt restructuring, crisis

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