Italy, however, also poses a threat, according to strategist Jim Reid and his team. The country faces a populist rising, a huge debt burden, a weak banking system, and a generally weak economy. Nowhere was that more true than in Italy. The country rejected a referendum on constitutional reforms that was widely seen as a vote against the establishment, and led to the resignation of Matteo Renzi, one of the country's longest serving prime ministers in recent decades.
For Greece, where the percentage of self-employed was more than double the EU average ina well known pattern is followed, where tax evasion is correlated with the percentage of working population that is self-employed.
One method of evasion that was continuing was the so-called "black market" or "grey economy" or "underground economy": The uncollected amount that year was about 4. By then, however, a tax treaty to address this issue was under serious negotiation between the Greek and Swiss governments.
Starting inbanks in both Greece and Switzerland will exchange information about the bank accounts of citizens of the other country to minimize the possibility of hiding untaxed income.
By Januarytaxpayers were only granted tax-allowances or deductions when payments were made electronically, with a "paper trail" of the transactions that the government could easily audit.
This was expected to reduce the problem of businesses taking payments but not issuing an invoice;  this tactic had been used by various companies to avoid payment of VAT as well as income Greece debt crisis analysis.
The requirement applied to aroundfirms or individuals in 85 professions. The greater use of cards was one of the factors that had already achieved significant increases in VAT collection in This froze private capital markets, and put Greece in danger of sovereign default without a bailout.
He also said he learned that "other EU countries such as Italy" had made similar deals.
BREAKING DOWN 'European Sovereign Debt Crisis' The European sovereign debt crisis was ultimately controlled by the financial guarantees of European countries, who . The U.S. debt situation is nothing like Greece's. Yet. As a condition of the latest bailout, the EU is requiring Greece to make wide-reaching changes to its pensions, labor and regulatory policies. by Aristides N. Hatzis September Modern Greece has a history of almost two centuries. During these centuries, the country managed to move from the backwaters of Europe to a prosperous liberal democracy before economic crisis hit the country hard in
A German derivatives dealer commented, "The Maastricht rules can be circumvented quite legally through swaps", and "In previous years, Italy used a similar trick to mask its true debt with the help of a different US bank.
In January it issued a report that contained accusations of falsified data and political interference. The final value, after revisions concluded in the following year using Eurostat's standardized method, was This was the highest for any EU country.
The methodology of revisions, has lead to a certain controversy. Specifically, questions have been raised about the way the cost of aforementioned previous actions such as cross currency swaps was estimated, and why it was retroactively added to the, and budget deficits, rather than to those of earlier years, more relevant to the transactions.
After the financial audit of the fiscal years — Eurostat announced in November that the revised figures for — finally were considered to be reliable.
In Julyprivate creditors agreed to a voluntary haircut of 21 percent on their Greek debt, but Euro zone officials considered this write-down to be insufficient. Schaeublethe German finance minister, and Mrs. Merkelthe German chancellor, "pushed private creditors to accept a 50 percent loss on their Greek bonds",  while Mr.
Trichet of the European Central Bank had long opposed a haircut for private investors, "fearing that it could undermine the vulnerable European banking system".
Private bondholders were required to accept extended maturities, lower interest rates and a Some key assets were sold to insiders. The recession worsened and the government continued to dither over bailout program implementation. The government predicted a structural surplus in  opening access to the private lending market to the extent that its entire financing gap for was covered via private bond sales.
They petitioned for the parliament or president to reject the referendum proposal. The Eurogroup wanted the government to take some responsibility for the subsequent program, presuming that the referendum resulted in approval. Many Greeks continued to withdraw cash from their accounts fearing that capital controls would soon be invoked.
This caused stock indexes worldwide to tumble, fearing Greece's potential exit from the Eurozone "Grexit". Following the vote, Greece's finance minister Yanis Varoufakis stepped down on 6 July and was replaced by Euclid Tsakalotos.
Many financial analysts, including the largest private holder of Greek debt, private equity firm manager, Paul Kazarianfound issue with its findings, citing it as a distortion of net debt position. According to Trading Economics forecasts, the country's economy will continue to grow by 1.
They included changes in labour laws, a plan to cap public sector work contracts, to transform temporary contracts into permanent agreements and to recalculate pension payments to reduce spending on social security.BREAKING DOWN 'European Sovereign Debt Crisis' The European sovereign debt crisis was ultimately controlled by the financial guarantees of European countries, who .
Greece Debt Crisis _Written Report Cheung Lai Po s Chiu Kam Ho s Lai Hiu Tung s Content 1. Objectives of the study 2. Background of Greek 3.
Causes of Greece Debt Crisis 4. Impacts of Greece Debt Crisis (1) Economic (2) Social (3) Others 5. As Greece’s debt threatens the rest of Europe and Wall Street, Michael Lewis wonders if the Greeks have wrecked their own ancient civilization.
Greece's Economic Crisis for Dummies 0 + Tsipras and his party did not make the decisions that lead to Greece's excessive debt. It was the repeated errors by the finance ministers of. Greece debt crisis Add to myFT. Analysis. The next steps for Greece now its bailout is ending Country’s long-term debt costs will be unsustainable in .
The European debt crisis (often also referred to as the Eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of Several eurozone member states (Greece, Portugal, Ireland, Spain and Cyprus) were unable to repay or refinance their government debt or to bail out over-indebted banks under their.