Greek Debt Crisis: What Happened
From 2009 to 2018, Greece went through a severe economic and financial crisis, often called the Greek debt crisis. In October 2009, the newly elected government of George Papandreou revealed that the country's budget deficit was far larger than previously reported, reaching around 15 percent of GDP, and that its public debt was much higher than officially stated. Investors lost confidence, and Greece's borrowing costs soared. Unable to borrow on the markets, Greece turned to the European Union and the International Monetary Fund, receiving three bailout programs, in 2010, 2012 and 2015, totaling around 289 billion euros, the largest in history. In return, Greece had to carry out harsh austerity measures, including cuts to wages, pensions and public spending, tax increases and privatizations. The economy shrank by around a quarter, unemployment rose to over 27 percent, and youth unemployment exceeded 50 percent. Hundreds of thousands of Greeks, many of them young and highly educated, emigrated. The crisis caused mass protests and political upheaval. Greece exited its final bailout program in August 2018.
Frequently Asked Questions
What was the Greek debt crisis?
The Greek debt crisis was a severe economic crisis from 2009 to 2018, after Greece revealed its budget deficit and debt were much higher than reported.
What caused the Greek debt crisis?
In 2009, the government revealed a deficit of around 15 percent of GDP. Investors lost confidence, borrowing costs soared, and Greece could no longer borrow.
How much bailout money did Greece receive?
Greece received three bailout programs in 2010, 2012 and 2015, totaling around 289 billion euros, the largest financial rescue in history.
How did the crisis affect Greeks?
The economy shrank by about a quarter, unemployment rose above 27 percent, youth unemployment exceeded 50 percent, and hundreds of thousands emigrated.
When did the Greek debt crisis end?
Greece exited its final bailout program in August 2018, although the effects of the crisis continued to be felt for years.
