Corruption in the government, economy takes a turn for the worse, and riots burst out in the streets. All have been around since the beginning of democracy. So it’s back around, and Greece is in a state of turmoil right now. Already three people have been killed in the protest in Athens. The Greek Prime Minister George Papandreou, whom was elected last year, was also handed this burden. This effects the rest of the world, from the Euro/Dollar exchange to the stock markets.

Why did this happen? Failure to implement financial reforms, years of limitless spending, and cheap lending is at the basis of the crisis. This was revealed when the global economy started a downward spiral, that shone a light on partly fiddled statistics that revealed debt levels and deficits that exceeded limits placed by the Eurozone. Prime Minister George Papandreou placed blame for the economic crisis on corruption “on all levels.”

“The same economic crisis that we’re living through is proof that these phenomena drove our country to unbearable debt and deficit and stagnated development.”

“That is why it is our obligation to improve, with all of our might, how the political system operates and for society to not shape a general climate that is against that system and against the institutions which can ultimately only harm the country and citizens themselves.” Papandreou said in a statement.

The Greeks were outraged at this situation and their government. Many were public service workers, whose salary comes from the tax payers. Others were ordinary citizens angry at how this will affect them. Also angered at the decisions that Papandreou had to make, which broke his campaign promises. Included in this, is the freezing of public sector pay, cutting spending, cutting pensions, and hiking taxes on things like fuel, tobacco, and more. As the protests happened throughout the country, three were killed in Athens, including a pregnant woman, in the act of burning a bank down.

The national debt is at 300 billion Euros ($413 billion) and the deficit is at 13% (12.7%). Banks and foreign investors feel that Greece wont be able to pay off it’s loans because of rising interest rates on existing debts. But on Sunday, May 9th, the International Monetary Fund and the European Union voted to loan Greece $1 trillion in aid package. This brought stocks to a high on the following Monday, but went on a rollercoaster on Tuesday.

There is a silver lining to all of this. If the value of the Euro continues to fall, and the Dollar rises, that could be an incentive for more U.S and Canadian tourism. This, of course, is provided that protests and strikes end so as not to scare away future tourists.

A NOTE FROM THE EDITOR

We’d like to introduce one of our contributing writers, Constantina Duncan. This is her first article for CarolinaGreeks.com. If you liked this article, feel free to repost it on your favorite social networking website or to add contributing thoughts or comments below. If you have any ideas for future articles, contact us. We’d love to hear what’s on your mind.

Also, the image used for this article was sent to us by an anonymous source – thanks! The source informed us that the image was a re-creation of an original cartoon and concept by cartoonist Nick Anderson.