Editing Greece (section)

=== Debt crisis (2010–2018) ===
{{Main|Greek government-debt crisis}}
[[File:Greek debt and EU average since 1977.png|upright=1.4|thumb|Greece's debt percentage since 1977, compared to the average of the [[eurozone]]]]
Greek economy had fared well (with high growth rates and low public debt) during most of the 20th century; high growth rates were maintained up to the [[2008 financial crisis]], coupled, however, with high structural [[Government budget balance|deficit]]s.<ref name="Debt Past">{{cite web |last=Skartsis|first=Labros |date=2018|title=2010–2018 Greek Debt Crisis and Greece's Past: Myths, Popular Notions and Implications |url=https://www.academia.edu/37583185 |website=Academia.edu |access-date=14 October 2018 |url-status=live |archive-date=4 May 2023 |archive-url=https://web.archive.org/web/20230504051355/https://www.academia.edu/37583185/2010_2018_Greek_Debt_Crisis_and_Greeces_Past_Myths_Popular_Notions_and_Implications}}</ref> In 2009, it was revealed deficits had been considerably higher than official figures.<ref name=":3" /> Banks had supplied cash in exchange for future payments by Greece and other Eurozone countries; in turn the liabilities of the countries were "kept off the books", hiding borrowing levels.<ref>{{cite news |author=Louise Story |author2=Landon Thomas Jr. |author3=Nelson D. Schwartz |date=13 February 2010 |title=Wall St. Helped to Mask Debt Fueling Europe's Crisis |newspaper=[[The New York Times]] |url-access=subscription |url= https://www.nytimes.com/2010/02/14/business/global/14debt.html |quote=In dozens of deals across the Continent, banks provided cash upfront in return for government payments in the future, with those liabilities then left off the books. Greece, for example, traded away the rights to airport fees and lottery proceeds in years to come. |access-date=19 February 2017 |url-status=live |archive-date=12 August 2021 |archive-url=https://web.archive.org/web/20210812074010/https://www.nytimes.com/2010/02/14/business/global/14debt.html}}</ref><ref>{{cite news |author1=Nicholas Dunbar |author2=Elisa Martinuzzi |date=5 March 2012 |title=Goldman Secret Greece Loan Shows Two Sinners as Client Unravels |publisher=Bloomberg L.P. |url=https://www.bloomberg.com/news/2012-03-06/goldman-secret-greece-loan-shows-two-sinners-as-client-unravels.html |quote=Greece actually executed the swap transactions to reduce its debt-to-gross-domestic-product ratio because all member states were required by the Maastricht Treaty to show an improvement in their public finances," Laffan said in an e-mail. "The swaps were one of several techniques that many European governments used to meet the terms of the treaty." |access-date=7 March 2017 |archive-date=13 January 2015 |archive-url=https://web.archive.org/web/20150113111834/http://www.bloomberg.com/news/2012-03-06/goldman-secret-greece-loan-shows-two-sinners-as-client-unravels.html |url-status=live }}</ref><ref name="The Guardian">{{cite news |author=Elena Moya |date=16 February 2010 |title=Banks that inflated Greek debt should be investigated, EU urges |newspaper=[[The Guardian]] |url=https://www.theguardian.com/business/2010/feb/16/greek-debt-goldman-sachs |quote="These instruments were not invented by Greece, nor did investment banks discover them just for Greece," said Christophoros Sardelis, who was chief of Greece's debt management agency when the contracts were conducted with Goldman Sachs.Such contracts were also used by other European countries until Eurostat, the EU's statistic agency, stopped accepting them later in the decade. Eurostat has also asked Athens to clarify the contracts. |access-date=11 December 2016 |archive-date=10 June 2024 |archive-url=https://web.archive.org/web/20240610022249/https://www.theguardian.com/business/2010/feb/16/greek-debt-goldman-sachs |url-status=live }}</ref> This was one of the techniques that enabled Greece to reduce its recorded budget deficit.<ref name="Der Spiegel">{{cite news |author=Beat Balzli |date=8 February 2010 |title=Greek Debt Crisis: How Goldman Sachs Helped Greece to Mask its True Debt |newspaper=[[Der Spiegel]] |url=http://www.spiegel.de/international/europe/greek-debt-crisis-how-goldman-sachs-helped-greece-to-mask-its-true-debt-a-676634.html |access-date=29 October 2013 |quote=This credit disguised as a swap didn't show up in the Greek debt statistics. Eurostat's reporting rules don't comprehensively record transactions involving financial derivatives. "The Maastricht rules can be circumvented quite legally through swaps," says a German derivatives dealer. In previous years, Italy used a similar trick to mask its true debt with the help of a different US bank. |archive-date=26 October 2013 |archive-url=https://web.archive.org/web/20131026152948/http://www.spiegel.de/international/europe/greek-debt-crisis-how-goldman-sachs-helped-greece-to-mask-its-true-debt-a-676634.html |url-status=live }}</ref>

The crisis was triggered by the [[Great Recession]], which caused Greece's GDP to contract 2.5% in 2009.<ref>{{Cite book |url=https://www.oecd.org/gov/budgeting/47840787.pdf |title=Restoring public finances |publisher=[[OECD]] |year=2011 |pages=119 |language=en |chapter=Country notes: Greece |access-date=26 December 2022 |archive-date=29 January 2023 |archive-url=https://web.archive.org/web/20230129165822/https://www.oecd.org/gov/budgeting/47840787.pdf |url-status=live }}</ref> Simultaneously, deficits were revealed to have been allowed to reach 10% and 15% in 2008 and 2009. This caused Greece's debt-to-GDP ratio to increase to 127%.<ref>{{cite web|title=Eurostat (Government debt data)|work=Eurostat |url=https://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=teina225&language=en|access-date=5 September 2018|archive-date=6 September 2018|archive-url=https://web.archive.org/web/20180906195452/https://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=teina225&language=en|url-status=live}}</ref> As a [[eurozone]] member, Greece had no autonomous [[Economic and Monetary Union of the European Union#Monetary policy inflexibility|monetary policy flexibility]]. Greece's borrowing rates increased, causing a crisis of confidence in Greece's ability to pay back loans in early 2010.<ref>{{cite news|title=Papandreou Faces Bond Rout as Budget Worsens, Workers Strike |url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUi3XLUwIIVA |publisher=Bloomberg L.P. |date=22 April 2010 |access-date=2 May 2010 |archive-url=https://web.archive.org/web/20110623231800/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUi3XLUwIIVA |archive-date=23 June 2011 }}</ref><ref>{{cite news |author=Staff |title=Britain's Deficit Third Worst in the World, Table |date=19 February 2010 |url=https://www.telegraph.co.uk/finance/financialcrisis/7269629/Britains-deficit-third-worst-in-the-world-table.html |access-date=5 August 2011 |work=The Daily Telegraph |location=London |archive-date=22 February 2010 |archive-url=https://web.archive.org/web/20100222082519/http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7269629/Britains-deficit-third-worst-in-the-world-table.html|url-status=live}}</ref>

To avert a [[sovereign default]], Greece, other eurozone members, and the [[International Monetary Fund]] agreed on a €110&nbsp;billion rescue package in May 2010.<ref>{{cite news |author1=Thesing, Gabi |author2=Krause-Jackson, Flavia |title=Greece Faces 'Unprecedented' Cuts as $159B Rescue Nears |url=https://www.bloomberg.com/news/2010-05-02/greece-faces-unprecedented-cuts-as-159b-rescue-nears.html |publisher=Bloomberg |date=3 May 2010 |access-date=6 May 2010 |archive-date=14 September 2010 |archive-url=https://web.archive.org/web/20100914072159/http://www.bloomberg.com/news/2010-05-02/greece-faces-unprecedented-cuts-as-159b-rescue-nears.html |url-status=live }}</ref><ref>{{cite news |author=Kerin Hope |title=EU Puts Positive Spin on Greek Rescue |url=http://www.ft.com/cms/s/0/08a87e4e-55c4-11df-b835-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210201220/https://www.ft.com/content/08a87e4e-55c4-11df-b835-00144feab49a |archive-date=10 December 2022 |url-access=subscription |work=Financial Times |date=2 May 2010 |access-date=6 May 2010 |url-status=live }}</ref> Greece was required to adopt harsh [[austerity]] measures to bring its deficit down.<ref>{{cite news|last=Newman |first=Rick |date=3 November 2011 |title=Lessons for Congress From the Chaos in Greece |newspaper=US News |url=https://www.usnews.com/news/blogs/rick-newman/2011/11/03/lessons-for-congress-from-the-chaos-in-greece |access-date=3 November 2011 |archive-url=https://web.archive.org/web/20111104005053/http://www.usnews.com/news/blogs/rick-newman/2011/11/03/lessons-for-congress-from-the-chaos-in-greece |archive-date=4 November 2011}}</ref> A second bail-out of €130&nbsp;billion was agreed in 2012, subject to financial reforms and further austerity.<ref name= BBCQ&A>{{cite news |url=https://www.bbc.co.uk/news/business-13798000 |title=Q&A: Greek debt |work=BBC News Online |access-date=14 May 2012 |url-status=live |archive-date=10 May 2019 |archive-url=https://web.archive.org/web/20190510095859/https://www.bbc.co.uk/news/business-13798000}}</ref> A [[Debt relief|debt haircut]] was agreed.<ref name= BBCQ&A /> Greece achieved a [[balanced budget|budget surplus]] in 2013 and returned to growth in 2014.<ref name="Kathimerini growth">{{cite news|last1=Bensasson |first1=Marcus|date=4 November 2014|title=Greece exited recession in second quarter, says EU Commission |work=[[Kathimerini]] |url=http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_04/11/2014_544283|access-date=4 November 2014|url-status=live |archive-url=https://web.archive.org/web/20150107102634/http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_04/11/2014_544283|archive-date=7 January 2015 }}</ref><ref>{{cite news |title=Greek growth rates put Germany, eurozone to shame |url=http://www.marketwatch.com/story/greek-growth-rates-put-germany-eurozone-to-shame-2014-11-14|access-date=16 November 2014 |work=[[MarketWatch]]|date=14 November 2014|archive-url=https://web.archive.org/web/20141116115422/http://www.marketwatch.com/story/greek-growth-rates-put-germany-eurozone-to-shame-2014-11-14 |archive-date=16 November 2014|url-status=live}}</ref>

Partly due to the imposed austerity,<ref name=":3">{{Cite news |title=Is the Greek financial crisis over at last? |language=en |newspaper=The Economist |url=https://www.economist.com/the-economist-explains/2018/08/21/is-the-greek-financial-crisis-over-at-last |access-date=26 December 2022 |archive-date=26 December 2022 |archive-url=https://web.archive.org/web/20221226194006/https://www.economist.com/the-economist-explains/2018/08/21/is-the-greek-financial-crisis-over-at-last |url-status=live }}</ref> Greece experienced a 25% drop in GDP between 2009 and 2015.<ref>{{Cite news |date=10 July 2015 |title=The Greek debt crisis story in numbers |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-europe-33407742 |access-date=26 December 2022 |archive-date=26 December 2022 |archive-url=https://web.archive.org/web/20221226195105/https://www.bbc.com/news/world-europe-33407742 |url-status=live }}</ref> The debt ratio, jumped from 127% to about 170%, due to the shrinking economy.<ref name="Debt 2017 Eurostat">{{cite news |url=https://ec.europa.eu/eurostat/documents/2995521/8824854/2-24042018-AP-EN.pdf/2e4cce59-7d36-4894-b21e-9f2c14b81630 |archive-url=https://web.archive.org/web/20180428162026/http://ec.europa.eu/eurostat/documents/2995521/8824854/2-24042018-AP-EN.pdf/2e4cce59-7d36-4894-b21e-9f2c14b81630 |archive-date=28 April 2018 |url-status=live|title= Eurostat (2017 Government debt data)|work= Eurostat |date=24 April 2018 |access-date=5 September 2018}}</ref> In 2013, the IMF admitted it had underestimated the effects of tax hikes and budget cuts and issued an informal apology.<ref name="IMF Guardian">{{cite news |url=https://www.theguardian.com/business/2013/jun/05/imf-admit-mistakes-greek-crisis-austerity |title=IMF 'to admit mistakes' in handling Greek debt crisis and bailout (The Guardian) |date=5 June 2013 |access-date=22 June 2018 |archive-date=10 June 2024 |archive-url=https://web.archive.org/web/20240610022237/https://www.theguardian.com/business/2013/jun/05/imf-admit-mistakes-greek-crisis-austerity |url-status=live }}</ref><ref name="IMF Reuters">{{cite news | url=https://www.reuters.com/article/us-imf-greece/for-hard-hit-greeks-imf-mea-culpa-comes-too-late-idUSBRE9550M320130606 |title= For hard-hit Greeks, IMF mea culpa comes too late (Reuters) |date=6 June 2013 |access-date=22 June 2018}}</ref><ref name="Fiscal adjustment">{{cite news |url=http://bruegel.org/2015/02/should-other-eurozone-programme-countries-worry-about-a-reduced-greek-primary-surplus-target/ |title=Should other Eurozone programme countries worry about a reduced Greek primary surplus target? |date=25 February 2015 |access-date=28 May 2017 |archive-date=12 September 2018 |archive-url=https://web.archive.org/web/20180912204358/http://bruegel.org/2015/02/should-other-eurozone-programme-countries-worry-about-a-reduced-greek-primary-surplus-target/ |url-status=live }}</ref> The policies have been blamed for worsening the crisis,<ref name="IMF Bloomberg">{{cite news |url=https://www.bloomberg.com/news/articles/2018-06-18/why-three-rescues-didn-t-solve-greece-s-debt-problem-quicktake |title=Why Three Rescues Didn't Solve Greece's Debt Problem (Bloomberg) |date=18 June 2018 |access-date=22 June 2018 |archive-date=23 June 2018 |archive-url=https://web.archive.org/web/20180623141119/https://www.bloomberg.com/news/articles/2018-06-18/why-three-rescues-didn-t-solve-greece-s-debt-problem-quicktake |url-status=live }}</ref><ref name="IMF WSJ">{{cite news |url=https://www.wsj.com/articles/will-the-imf-apologize-to-greece-1402863715 |title=Will the IMF Apologize to Greece ? (WSJ) |date=15 June 2014 |access-date=22 June 2018 |archive-date=23 June 2018 |archive-url=https://web.archive.org/web/20180623113418/https://www.wsj.com/articles/will-the-imf-apologize-to-greece-1402863715 |url-status=live }}</ref> while others stressed the creditors' share in responsibility.<ref name="Pavlopoulos Moscovici">{{cite news
|url= http://www.kathimerini.gr/972843/gallery/epikairothta/politikh/paylopoylos-se-moskovisi-na-mhn-epanalhf8oyn-la8h-poy-odhghsan-se-odynhres-8ysies-ton-lao
|title= Pavlopoulos to Moscovici: the mistakes that led to painful sacrifices for the Greek people should not be repeated (Kathimerini, in Greek))
|date= 3 July 2018
|access-date= 30 July 2018
|archive-date= 1 August 2018
|archive-url= https://web.archive.org/web/20180801004156/http://www.kathimerini.gr/972843/gallery/epikairothta/politikh/paylopoylos-se-moskovisi-na-mhn-epanalhf8oyn-la8h-poy-odhghsan-se-odynhres-8ysies-ton-lao
|url-status= live
}}</ref><ref name="Tsipras Bloomberg">{{cite news |date=27 June 2018 |title=Tsipras says Greece won't go back to old spending ways |url=https://www.bloomberg.com/news/videos/2018-06-27/tsipras-says-greece-won-t-go-back-to-old-spending-ways-video |access-date=30 July 2018 |archive-date=1 August 2018 |archive-url=https://web.archive.org/web/20180801034439/https://www.bloomberg.com/news/videos/2018-06-27/tsipras-says-greece-won-t-go-back-to-old-spending-ways-video |url-status=live }}</ref><ref name="Debt 2017 Eurostat"/> The bailouts ended in 2018.<ref name="Bailout exit Reuters">{{cite news |url= https://www.reuters.com/article/us-eurozone-greece-bailout/greece-exits-final-bailout-successfully-esm-idUSKCN1L40OG |title= Greece exits final bailout successfully: ESM |work= Reuters |date= 20 August 2018 |access-date= 31 August 2018 |archive-date= 31 August 2018 |archive-url= https://web.archive.org/web/20180831081000/https://www.reuters.com/article/us-eurozone-greece-bailout/greece-exits-final-bailout-successfully-esm-idUSKCN1L40OG |url-status= live }}</ref>

In 2024, the Greek economy is forecast to grow nearly 3%, meaning it approaches its pre-crisis size of 2009 and far outpacing the eurozone average economic growth of 0.8%.<ref>{{cite web |title=Greek economy surges after decade of pain |url=https://www.reuters.com/markets/europe/greek-economy-surges-after-decade-pain-2024-04-18/ |website=reuters.com |date=18 April 2024 |access-date=23 April 2024 |last1=Papadimas |first1=Lefteris }}</ref>