Greece from Postwar Orthodoxy to “Democratic Peronism” | Pseudoerasmus
The proximate causes of the present Greek crisis are straightforward. Although the Greek government had engaged in ‘fiscal consolidation’ during the 1990s in order to qualify for the Eurozone, upon accession it began running larger budget and current account deficits. These were financed with cheap foreign credit thanks to the lower cost of borrowing in euros. The fiscal monitoring functions of the EU’s Stability & Growth Pact were laxly enforced, but Greece also had some foreign help in cooking its books.