Essay --

Executive Summary Before adopting the euro as the official currency in 2001, Greece was one the stable European economies. The early stages of the currency transition worked very well for Greece. However, the state later fell into financial crisis, which has not only affected Greece’s government, but also the entire European countries and their trading partners, such as the United States. Therefore, the Greece financial crisis has become a global concern with the United States Congress, making it a continuous concern brought about by trading partnership, United Banks exposure, and the involvement of the International Monetary Fund institutions. The Greece financial crisis could have been controlled, had it not been for the malicious acts by countries such as Germany and France, which were already using more than the limit at that time. Several nations have both supported and opposed the financial support towards responding to the Greece financial crisis. Nevertheless, it is clear that withdrawi ng from the Eurozone or defaulting the debt would have had many devastating effects on the Greece market investors, the European Union, the European Central Bank, and the European trading partners. The Greek Prime Minister Papandreou has been under great pressure from the opposition, as his parliament passed the austerity measures, which have contradicted his campaign manifesto. However, the search for a lasting solution to help Greece regain its economic stability have continuously formed debate agenda in different political and economic platforms in European and global forums 1- Introduction The Eurozone is facing a serious severing debt crisis. Several member states of the European community have high, potentially unsustainable levels of... ...ded with the correct measures. The debt continued to pile to amounts that Greece could no longer afford to repay on its own. Several response strategies have been employed to help reestablish the Greece economic conditions to levels before the crises. However, these efforts have only achieved helping the Greece government to avoid the default. These response strategies include Fiscal Consolidation and Economic Reforms in Greece. Banks also aided Greece in getting out of the crises. The European Union Central Bank and the International Monetary Fund gave loans to Greece market investors. The Federal Reserve (Fed) also supported the response to the crisis through the establishment of temporary reciprocal currency arrangements referred to as swap lines with several central banks in the Eurozone in a bid to increase the liquidity of the dollar in the global economy. â€Æ'