Greece is struggling to accept a deal with the European Union that will raise taxes and enforce economic changes that will make everyday life harder. The alternative was a banking crisis that could have crushed the economy and sent Greece spinning away from the European Union.
Greek Prime Minister Alexis Tspiras managed to win narrow approval for the international bailout, which means the European Central Bank
will now reopen funds
to the Greek banking system.
Protests erupted in the streets of Athens, Greece Wednesday night in response to the financial bailout deal.
Since 2008, when Greece first announced its dire financial situation, the country has been forced to raise taxes and realign public salaries and pensions as its leaders tried to remain in the Eurozone.
Tspiras admitted he did not agree with most of the deal, but signed it out of necessity and the hope that its measures will help his country avoid bankruptcy.
Greek banks remained closed for the third week in a row on Thursday, and a report from the International Monetary Fund projected that it may take 30 years before Greece can repay any of its debt.
Furthermore, instability in the Greek government and an upcoming election could make other European nations uneasy about sending bailout money until they know who exactly will be spending it.
Warm up questions
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What is the European Union?
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What do you know about Greece’s financial situation?
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What does it mean to go bankrupt?
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What would happen if the banks in your community shut down?
Critical thinking questions
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Given the Greek public’s response and criticism of Greek leadership, should the European Union be confident in the country’s ability to eventually dig itself out of debt?
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Why does Greece want to remain in the Eurozone?
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Why do the other European nations want to help Greece avoid bankruptcy?
