Greece's Soverign Debt

Introduction
Greece is at a critical juncture of its recent history: the economic policies of the last three
decades have brought it close to bankruptcy, but bankruptcy can be avoided and growth can
resume if important economic reforms are made and rigorously implemented. For the
reforms to succeed, a social consensus is important. In particular, there must be general
agreement on why reforms are needed and what reforms should be made. Yet, consensus is
missing. Some oppose the reforms that Greece has agreed on with its lenders on the
grounds that they are misguided or that they imply a loss of national sovereignty. Others
defend the reforms, but on the grounds that these are the price to pay for avoiding
bankruptcy‐‐‐thus suggesting that if Greece’s lenders had asked for different reforms they
would have defended those instead. And a large fraction of the general public is left unsure
about whether Greece will manage to exit the crisis, and how the reforms will help achieve
that goal.
This assignment will explain the need to build a social consensus around the reform process by
Stating what key reforms are needed to get Greece out of the crisis, and why these
reforms can make Greece prosperous. Understanding what the necessary reforms are
required & understanding the causes of the crisis will be discussed as well.
Much of the debate about Greece’s current problems has focused on the short‐run
management of the crisis. Will Greece be able to repay its debt, or will it have to
restructure ? Will Greece exit the euro, and should it do so? Will the European Union and the
European Central Bank decide to offer further assistance to Greece? Discussion of these
Issues is pointless unless Greece undertakes the type of reforms that will be outlined in this
assignment. If reforms are not undertaken Greece is bound to default and the crisis to deepen. If
instead reforms are undertaken, the management of the debt will become much easier:
Greece will...