WORLD NEWS: Greek Finance Minister resigns as Country Economy Collapse

Yanis Varoufakis, Greece's embattled finance minister, has resigned his post, saying the move could help Prime Minister Alexis Tsipras reach an agreement with creditors.

Greece has become the first advanced economy to fall in arrears to the IMF as its second bailout expires

>>Some of the Reasons Greece Got Into Its Economic Crisis

1. Inefficient Pension System
Greece spent 17.5 percent of its economic output on pension payments, the most in the E.U., according to the most recent Eurostat data from 2012. But with existing cuts, that figure has fallen to 16 percent, Reuters reported. Italy, France and Austria each spent about 15 percent of their GDP on pensions in 2012, according to Eurostat. Greece's struggle to pay pensioners is even more evident this week with banks closed and Greeks unable to withdraw more than 60 euros from ATMs.
2. Benefits
Government employees have had some of the best worker benefits in Greece. For example, an unmarried daughter used to receive her dead father's pension, Tsoukas said, though that specific practice stopped after the bailout agreement was made in 2010. Some workers received atypical bonuses for showing up to work on time, but these bonuses were paid so workers were not paid higher pensionable salary. Either way, it's a practice that austerity measures eliminated.
3. Early Retirement
In 2013, Greece's retirement age was raised by two years to 67. According to government data, however, the average Greek man retires at 63 and the average woman at 59. And some police and military workers have retired as early as age 40 or 45, Tsoukas said. There are also unique benefits for some workers. Female employees of state-owned banks with children under 18 could retire as early 43, he said.

4. Tax Evasion
The country has struggled to collect taxes from citizens, especially the wealthy, which is a problem when Greece's national debt is 177 percent of its GDP. Italy’s debt is about 133 percent of its GDP as of 2014, according to Eurostat. Greece's far-left government has said it wants to target wealthy tax evaders, but creating a more equitable tax system has been challenging.

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FACEBOOK COMMENTS

Enyinda Nathaniel Okey likes this.

Enyinda Nathaniel Okey

They were the first in Europe to civilize. With time.. Technology overtook them. Before they knew what was happening..they found themselves living in d past! No way to sustain d lifestyle of free inheritance in a world where they Don't have much to export!

Endy Edeson

@eyinda: I WONDER why Greece with a very good historical attributes still struggles to sustain her economy, well, no need for me to wonder, just wrong govt policies. Sometimes, i do feel feel for greece citizens for the hardship they are going through. Well, if they are kicked out of the Eurozone, it may either affect them positively or negatively depending on how the govt re-strategies.

Enyinda Nathaniel Okey

They love their superior Greek language. The English UK doesn't feel too comfortable with people with rigid language ethics. For Greece to reach out is a lot of struggles.. Language being a barrier. Let Ndigbo have free visa and Greece will change in 2 years!

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