Low domestic savings should lead to foreign borrowing for public spending. 90s domestic savings rate of Greece only average at 11%, much lower than 20% of countries such as Portugal, Italy, Spain, and is tending to decline rapidly .Chi of rising consumption led to budget deficits. Greece's GDP growth has been praised with the average growth rate of 4.3% annually (2001-2007) compared to the average of the Eurozone was 3.1%. However, during this period, government spending increased 87% while the government revenue rose 31%, making the budget deficit exceeds 3% of GDP allowed by the EU. As of 01/2010, Greece's public debt amounted to 216 billion estimated Euro and accumulated debt reaching 130% GDP.Su aging and pension systems in the most generous kind eurozone Greece is also regarded as one of the public expenditure burden. Estimate the total amount paid to public sector pensions will increase Greece's GDP from 11.5% (2005) to 24% (2050). Revenues also decreased as a factor leading to the budget deficit and public debt increase. Tax evasion and underground economic activity in Greece is a factor reducing revenues sach.Su easy access to foreign investment and the use of inefficient capital. Besides, joining the Eurozone in 2001 is a great opportunity for Greece can access international capital markets with the use of a coin is the major economies such as Germany and France, along with the management assurance monetary policy of the European Bank (ECB). By joining the Eurozone Greece automatically obtain high image stability and certainty in the eyes of investors, easy to attract foreign investment with low interest rates. Nearly a decade, continuous Greek government bond sale to earn hundreds of billions of dollars. This money could have helped Greek economy very far if the government plans to spend sensibly. However, the Greek government has spent more than hands (largely for infrastructure) that are hardly interested in the plan pay no.thieu transparency and confidence of investors. The lack of transparency in the statistics of Greece has lost the confidence of investors that the country has built up as a member of the Eurozone and rapid emergence of withdrawal wave oh mass out of Greek banks, pushing the country into a difficult situation in raising funds on the international capital markets. The dependence on foreign financing makes Greece becomes very vulnerable to changes in investor confidence. In an era of integration, transparency is always a huge demand of investors. The debt crisis of Greece by non-transparent government figures, trying to paint a bright picture, pink on the state budget for the coming enacted policies to overcome the budgetary difficulties or problems economics.
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