Greece's Debt Crisis: Overview, Policy Responses, and Implications, April 7, 2010

摘要

Over the past decade, Greece borrowed heavily in international capital markets to fund government budget and current account deficits. The reliance on financing from international capital markets left Greece highly vulnerable to shifts in investor confidence. Investors became jittery in October 2009, when the newly-elected Greek government revised the estimate of the government budget deficit for 2009 from 6.7% of GDP to 12.7% of GDP. There are now questions about whether Greece will be able to repay its maturing debt obligations and interest payments, totaling 54 billion ($73 billion), in 2010. This report analyses the Greek financial situation and identifies its implications for the United States. The debt crisis has both domestic and international causes. Domestically, analysts point to high government spending, weak revenue collection, and structural rigidities in Greece's economy. Internationally, observers argue that Greece's access to capital at low interest rates after adopting the euro and weak enforcement of European Union (EU) rules concerning debt ceilings facilitated Greece's ability to accumulate high levels of external debt. During the crisis, the Greek government has sold bonds on international capital markets in order to raise needed funds, although investors have demanded high interest rates to compensate for the perceived risk of these investments. Greece's government has also unveiled, amidst domestic protests, austerity measures aimed at reducing the government deficit below 3% of GDP by 2012. At the end of March 2010, the Eurozone member states, led by Germany and France, announced after much debate that they would provide financial support to Greece if necessary and if accompanied by financial support from the International Monetary Fund (IMF). A common method for addressing budget and current account deficits, currency devaluation, is not possible for Greece as long as it uses the euro as its national currency.