Throughout the European debt crisis, Greece has played a prominent and controversial role
after hiding their massive debt from the EU. The country’s inability to pay back what
it owes has threatened to topple the European currency. So we wanted to take a closer look
at this turbulent and risky nation. Just how powerful is Greece?
Well, Greece, officially called the Hellenic Republic, is a relatively small country. At
about 50,000 square miles, it’s roughly the same size as the US state of Louisiana.
Their population isn’t so large either, and accounts for only ten million residents.
But although Greece is small, it’s historical impact on the world is enormous. Ancient Greece
is considered the beginning of Western civilization as we know it. The origins of much philosophy,
democracy, theater, sports, mathematics and science can all be traced back to Ancient
Greece.
However, today their direct impact on global events has certainly declined. Although they
have an advanced, high-income economy, with a GDP of about 240 billion dollars, they are
also about 350 billion dollars in debt. And in recent years their GDP has been falling,
with one in four Greeks unemployed. Still, the country enjoys a very high standard of
living. Most of the economy is based on the service sector, as well as merchant shipping,
and tourism. Greece’s important past and large number of UNESCO World Heritage Sites
make it an extremely lucrative tourist destination. Tourism brings in roughly 15% of the country’s
total GDP.
Besides Greece’s somewhat risky inclusion in the European Union, it also enjoys membership
in a number of other powerful alliances. Greece was one of the founding members of the UN,
and is part of the Council of Europe, NATO, OECD, and the WTO. These defensive alliances
ensure that Greece is in little danger of military aggression. As a result, their military
is relatively weak. Ranking 65th in the world, their 450,000 troops are largely the result
of compulsory service for males. Greece only spends about 6 and a half billion dollars
on Defense, comprising a little more than 2% of their GDP.
Greece is one of the most historically influential countries in the world, primed for tourism,
and boasting a very comfortable quality of life. However, its small size, weak economy,
high unemployment, and limited military are all unavoidable problems. In the last few
years, the government has implemented severe austerity measures to reign in their debt,
further lowering the country’s influence. Greece may be powerful enough to cripple the
European Union, but not nearly enough to recover its former status. Greece’s debt crisis has the potential to destabilize the EuroZone. Could the European Union fall apart? Watch this video to find out.