the eu trade policy

8/8/2019 The EU Trade Policy

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he EU Tradehe EU TradePolicyolicyGreece

Greece and European Trade

policy

, ,Maria Gourbatsi Socrates Kitsakis

Polychronis Christos Karatsais


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y

Table of Content


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IntroductionntroductionGREECE,Hellas, officially known as the "Hellenic Republic" is the mostsoutheastern country in Europe, occupying the most southern part of the

Balkan Peninsula.

Borders: Albania, F.Y.R.O.M., Bulgaria and TurkeyCapital: AthensPopulation:11.2 million

Currency: euro ()Official language: GreekTotal area: 131 957 km


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Government Type: parliamentary republic:resident of the Republic

Karolos Papoulias

rime Minister :Georgios Papandreou

:Member of EU since 1981 WTO since 1995

Greece joined NATOin 1952

BSEC since 1998 OECD since 1960


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History( )Greece and the Greek Islands is a country

with a particularly rich history and famous

!!!personalitiesv ( , - , ).Paleolithic era 11 000 3 000 BCv ( - )civilization of the Minoans 2600 1500 BCv ( - )the Mycenaeans 1500 1150 BC andv .the Cycladic civilization

( - )The Classical Period of the Greek history 6th 4th centuries BCis the most famous worldwide The peak of the classical period is the

,5th century BC when the foundations of western civilization were put in.Athens

Period of ( )Alexander The Great In 334 BC

( )The conquest of Greece by the Romans In 168 BCModern Greece ( )The conquest of Greece by the Ottoman Turks In 1452 AD ( )Greek War of Independence In 1821 AD ( ) (Second World War In 1940 AD and military junta from 1967 till

)1974

, .Since 1975 the regime of Greece is Parliamentary Republic

Ancient Greece


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NATUREGreece is endowed with a rich and diversified natural environment as a

,result of a rare geomorphology with many striking natural contrasts. and areas of great ecological value

Forests and national parks in the mountainsrivers and lakes

( , )ISLANDS over 6 000marine parks near the islands of Alonissos

and Zakynthos

rare bird species


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Traditionreece Food and Wineare famous for

.their good quality and amazing taste

qFeta CheeseqqMoussakaqq ines of Greece

qOuzoqTsipouro


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reek Economyreek EconomyThe conomy of Greece -is the twenty seventh largesteconomy

( )in the world by nominal gross domestic product GDP andthe

- ( . . .thirty third largest by purchasing power parity I M F).2008

The Greek economy is a developed economy with the 22nd

.highest standard of living in the world% .The public sector accounts for about 40 of GDP The. % ,service sector contributes 75 8 of the total GDP

. % . %.industry 20 8 and agriculture 3 4-Greece is the twenty fourth most globalized country in

.the world and is classified as a high income economy

Public financesPublic debt $405.7 billion (113%

of GDP)Revenues $108.7 billion (2009

est.)Expenses $145.2 billion (2009

est.)Foreign reserves $3.473 billion (31December 2008 est.


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Greecereece:Main industries

TourismShippingIndustrial ProductsChemicals Metal ProductsMiningPetroleumFood and Tobacco processing


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sGreece mainly exports the

following commodities:.i Food and beveragesii.

.iii Manufactured goods

iv..v Petroleum productsvi.

.vii Chemicalsviii.

.ix Textiles

x.

Major export partners

:are

ItalyGermany

Bulgaria

Cyprus

US

UK

Romania

Exports $18.64 billion (2009est.)


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ImportsmportsThe excessive amount of imports has always been a cause of worry for Greece

. ,economy Even though imports decreased during recession the volume remained a. , ,lot higher than exports Thus the economy had to rely on tourism loans as

.well as remittances from expatriates for filling the gapImports . ( .)$61 47 billion 2009 est

Main imported:commodities

v

vMachineryvvTransport equipmentv

vFuelsvChemicals

Importpartners of

:Greece South Eastern Europeancountries

. %Germany 12 1

Italy. %11 7

. %Russia 7 4

. %China 5 6

. %France 5 1


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008 and the Impact in008 and the Impact inGreecereece,Years of unrestrained spending cheap lending and failure to implement

financial reforms left Greece badly exposed when the global economic downturn. -struck The debt levels and deficits that exceeded limits set by the Euro zone

& .were revealed exposed

, In the first quarter of 2010 the national debt of Greece was put at 300

( . ), .billion $413 6 billion which is bigger than the country's economy The

( ) . %.country's deficit its expenditure in comparison to its revenue is 12 7

,Since joining the euro Greece has had higher inflation than other Euro zone.members

Greece has also increased debt faster than others to finance generous public, , ,sector pay welfare and retirement benefits while collecting a lower share

.in taxes due to widespread tax evasion ,As a result Greek goods have become increasingly expensive and

, .uncompetitive causing loss of market share and further reducing revenues


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Relative price indicators based on exportprices

Th G k D bt C i i


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The Greek Debt Crisis / % /Greek debt GDP ratio reached 113 and deficit GDP

. % .ratio reached 12 7 in 2009 Foreign bondholders became doubtful that Greece could,continue to roll over its increasing debt forced

.interest rates higher

EU faced choice between Greek default and bailout

.with tough conditions IMF and EU agreed to lend Greece up to $146 billion

.over three years ,Greece to increase sales taxes reduce public sector

, , .salaries pensions eliminate bonuses


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Dynamicsynamics


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:mpact on private individuals ,The most obvious way would be through tax bills as Europe

agrees to ride to the rescue and help Greece deal with its.mounting public and foreign debts

Any assistance to Greece will come at a cost that willultimately have to be borne by taxpayers in the nations

that contribute. ontagion Effect

Greek crisis has made investors nervous about lending money.to governments through buying government bonds

Everybody's interest rates are heading higher asgovernments are having to pay a greater risk premium to

.borrow money

:educed wealth-Take home pay is likely to fall as it is eroded by risingtaxes and everyone will have to work longer before they-retire by which time they are likely to find that their

.pensions have shrunklower recovery


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&esolutionConclusion

,Greece has outlined plans to cut its budget deficit or the, . %amount its public spending exceeds taxation to 8 7 of its

, % .GDP in 2010 and to less than 3 by 2012-Just before the massive bail out package was announced the

Greek government pledged to make further spending cuts and-tax increases totaling 30bn Euros over three years on top

.of austerity measures already taken

,Greece facing difficult adjustment problems European banks.avoiding losses on Greek bonds- ,In the period 2007 2013 Greece will increase its

.pace and will get even closer to its targets Greece,expands its growth potential and enhances the

competitiveness .and extroversion of its economy It capitalizes,on its comparative advantages in order to

emerge as a strong economic force in the region of- .South eastern Europe

Greece s Debt Crisis has put the EU under the


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Greece s Debt Crisis has put the EU under the, &scope it has shifted the attention to the

& - . efficiency the success of the Euro zone It s(&considered as probably the biggest test the EU

- ) .the EMU in particular has gone through How the EU& Greece are handling the crisis with the whole-bail out plan will reflect to what extent the EU

is able to function on its own as a powerful.economic entity

It s too early yet to measure the effectiveness of.the bail out plan


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