The Great Recession of Greece

On the 20^th of July 2011, President Barroso launched a Task Force to provide technical assistance to Greece. The purpose of the Task Force was to explore the modalities for financing a new multi-annual adjustment programme, with steps to reduce the cost of debt servicing and to improve the sustainability of Greek public debt. It will also provide quarterly progress reports to the Greek authorities and to the European Commission. These measures were required in order for Greece to receive the sixth international tranche of 110,000 million euros approved in May 2010 so as to rescue it from the crisis it suffers. Now, Greece is working on creating reforms and economic measures based on mass layoffs in the public sector, 40% cuts of civil servant´s salaries, increase in property taxes and fuel, and cuts in pensions.

Whilst Greece´s national economic situation is devastating the European bank reserves and astringent monetary measures should be imposed to revive itself from such a debt, such austere cuts only seek to drain the middle class-the sector of society that most nations depend on for economic stimulation in such times of depression. Greece should rather look to impose measures that will guarantee larger tax returns in a shorter time frame, for instance higher rates of inheritance tax, an increased tax percentage for the wealthier tax brackets and so forth. Greece should set an example by stimulating the economy throughout all of the classes whilst ensuring that the debt can be paid off quickly and thoroughly.