Flamboyant Greeks deep in Debt

Economists have opined that Greece has lived and spent beyond its means. This was the reason why many opposed its joining the European Union (EU) in 1999. Many thought that its joining EU will correct its financial recklessness, but it proved them wrong. It further complicated it's financial problems.

In 2000, many suspected that it submitted padded figures for it to be able to join the EU. At that time, it has an inflation rate of 4%, higher the then recession-hit Britain. One out ten of its work force was out of work.

By joining EU, its loan interests went down dramatically from 10- 18% to 2-3%.

Ben May, Greek economist at think tank Capital Economics, said: "Their mistake was to go out, borrow money and use it to fund huge wage growth, rather than pay down its already substantial debts."

It went into spending spree- doubling workers' wages and giving out liberal pension plans to many retirees. Tax evasion and corruptions are way of life, especially of the middle class. When it hosted the 2004 Olympics, the cost doubled at 4.5 Billion Euros, which deepens further its financial situation.

At the start of 2010, its national debt hit 300 billion Euros, more that it's GDP. Its budget deficit is 13.6%, more than double Euro Zone average.

But it's financial infamy started, when international agencies dumped its credit rating into the gutter. It pushed its loan interests costs upward and lost the trusts of creditors.

It had to turn to IMF and EU for a 120 billion Euro emergency loan; but the package came full with string attached. These are in form of tough restrictions, to correct its bad habits of reckless spending. Many Greeks fear that this will prolong their agony that might even trigger economic and political collapse.