The fact that Greece doesn't need a fourth bailout isn't a tribute to eurozone policy, but to Greek resilience in the face of that policy.

Moreover, excluding debt repayments, the country appeared to have accrued a budget surplus of about 4 percent in 2016 and 2017.

Greece had not qualified to join the Eurozone in 1999 when the initial list of candidate entrants was drawn up, because it failed to meet the 1992 Maastricht Treaty economic requirements for countries joining the zone.
Ironically, as Exhibit 6 shows, in the run-up to the crisis, Greece was one of the developed world’s fastest growing economies. Greece has been part of the European Economic Community (the precursor to the European Union) since 1981, but struggled to join the Euro, the Eurozone’s common currency, as some of the conditions of entry were stringent. However, membership in the Euro had been plastered over the underlying structural deficiencies in the economy that had still not been resolved. The increase in interest payments further increased the budget deficit, so there was a risk that Greece would enter a vicious downward spiral of higher debt levels leading to higher interest rates leading to increases in the budget deficit. Second, if Greece had reintroduced its own currency, it would have needed a significant degree of devaluation to compensate investors for the risk of holding the currency, especially (as discussed later) given its track record of misleading investors with misreported economic and financial data. The vote set the stage for Greece to formally remove its objection to Macedonian membership in NATO, thus paving the way for official adoption of the new name. Absent an agreement and the infusion of funds it would have brought, Greece was barely able to make its scheduled May payment on the bailout loan, raising the spectre of a default on its June payments if an agreement with the troika could not be reached. Rather than creating the conditions for sustainable growth, the government was encouraging a bubble to develop. They had an interest in keeping Greece afloat to keep a Greek default from destabilizing the financial systems of their own countries. Smith, Helena. After months of being out of the spotlight, Greece has recently returned to the fore as an impending repayment deadline on its latest batch of rescue-package loans becomes due in July. Greece was thus out of sync with the rest of the global economy; its financial crisis was just beginning when signs of economic recovery were visible in major economies around the world. Greece joined the European Communities (subsequently subsumed by the European Union) on 1 January 1981, ushering in a period of sustained growth. How could it have ever been sensible that Greece could borrow at effectively the same rate as Germany given their economy and outstanding debt. Despite Greece being beset by economic mismanagement and misreporting of economic performance by successive governments, investors failed to pick up or act on a growing collection of warning signs: In addition, the lack of accountability and proper oversight in so many aspects of Greek public finances compounded the problems. Greece's admission into the Eurozone in Jan. 2001 and its adoption of the euro made it much easier for the government to borrow. At this time, the Greek government was concerned about economic equity and social cohesion and wanted to increase public spending selectively in such areas as pensions and salaries of public-sector employees.


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