Greece!: Financial Crisis In Greece

Greece has recently made U.S. news concerning its current budget plan, extreme debt, and their implications on the euro. Greece's budget deficit reached 13 % of GDP (gross domestic product) in 2009, and plans to change that to 3% of GDP by 2012. This budget plan includes major spending cuts and boosting tax revenue. The dramatic change in financial planning has posed extreme concerns for the country's poor economy. With major spending cuts there can come a lack of growth, leading to lower tax revenue. Greece's financial crisis also has the potential to damage the status of the euro, the currency which it shares with several other European Union countries. The exchange rate of the euro is currently $1.377 , a low largely influenced by the crisis in Greece.

EU leaders are scheduled to meet tomorrow(2/11) and a bailout for Greece seems to be the primary concern. Both France and Germany are negotiating a budget plan to help resolve Greece's financial problems. Germany has suggested guarantees of loans, but no plan is set in stone just yet.

Unfortunately, many people in Greece have already been affected by the spending cuts. Schools, courts, and public offices have been closed due to striking of citizens.