While these austerity measures were met with

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arrested and many were also killed in these attacks. While these austerity measures were met with tremendous opposition from the public, the Greek government was almost forced into imposing the austerity measures in order to meet the requirements necessary to receive the bailout loan package from the European Union and the International Monetary Fund (IMF). The bailout plan proposed in 2010 would involve loans from the countries within the Euro zone. The amount that each country provides is mainly dependent on their GDP and their population, meaning that Germany and France would be the two main contributing countries to this bailout package, with Germany being the main donor of all euro zone countries, due to its high GDP and huge population. The effects of the Greek economic crisis have now extended into many members of the Eurozone, not just Greece anymore. Other nations in the European Union have now felt the impacts of the Greek economic crisis. This economic crisis shows just how connected all members of the Eurozone are to each other, and that
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has put pressure on the Eurozone to act. Budget decisions made in one country can have effects on all other countries in the European Union. Bailouts In the first of many bailout packages to be proposed, on April 12 th 2010, the Eurozone announced a bailout package worth 30 million euros, with an additional 15 million euros from the IMF. The total original bailout package was 45 billion euros. Only a couple weeks later, on May 3 rd , the original bailout package from the Eurozone and the IMF was increased to 110 billion euros, more than double its original value. Only a week after that announcement, a 750 billion euro package was announced to not only help Greece through their economic crisis but also any other countries in the Eurozone that may be suffering through economic hardships such as Spain and Portugal. The bailout package consisted mainly of interest bearing loans, which means that eventually these loans being handed out in the bailout package would have to be paid back to the donor nation. Even though these bailout plans were in place to be given to Greece, there is an extremely high risk involved in providing a country like Greece with a bailout loan package. Bailout plans in the forms of loans present high risk and many times fail to succeed due to a country’s fundamental fiscal problems. The country may not be prepared to handle all these loans in the future, even if in the immediate effects the loans are helping a country rise out of a recession or economic crisis. There is high government indebtedness involved when dealing with bailouts in the form of loans, which results in a high risk for the donor nation when providing these loans in the bailout package. By providing such a high-risk bailout package, a lot of faith is put into the recipient country
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that they’ll actually come out of their economic crisis or recession stronger and more stable than before, with a stable economic system in place.
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