UNIVERSITY OF IOANNINADEPARTMENT OF ECONOMICSCOURSE: ENGLISH FOR ECONOMISTS IV INSTUCTOR: TSELIGKA THEODORA ACADEMIC YEAR: 2013-2014

Greek/World economic crisis and public sector (welfare state)

STUDENTSANDREAS SINTOS 2512ARISTIDIS NTOKA 2484

SOTIRIS STAUROPOULOS 2519GIORGOS TSIAHTSIRAS 2543KONSTANTINA KOSMA 2427

Overview • Causes of worldwide economic crisis•Comparison of two different periods of crisis•Greek Economy•Two Greek economic crises•Public Sector•Welfare State•How did the crisis affect public sector?•What happened in the employment during the crisis ?•The measures of MoU for Greek economy•Conclusion

Causes of worldwide economic crisis

• End of withdrawals due to hedge funds and evaporation of liquidity

• The burst of the bubble of mortgage and the increase in the prices of securities at a high level

• People who invested in securities lost their money

Comparison of two different periods of crisis

• In 1929 the Great Depression started after the fall in stock prices and ended with the second world war.

• Nowadays, crisis led to rise of unemployment, decrease of international trade and the prices of products fell rapidly.

Greek Economy

• For the year 2012-2013 the economy of Greece , according to word Bank Statistics was the 42nd largest in the world

• The same years Greece is the thirteen largest economy among the 28 members.

• The average income per person in 2009 was 28.452 but the year 2013 is 22.083 which ranked Greece in the 37th place in the world.

Two Greek economic crises

• In 1930, the Greek economy is based on exports and the people could not buy agricultural products.

• In our days, Greek crisis is a combination of high traffic public spending, tax evasion and deficits existed.

Public Sector

• What is the public sector ?• How the public sector had affected the

economic crisis in Greece ?• Comparison between public sector of Greece

with other European countries

Welfare State

• What is the welfare state ?• The contribution of the welfare state in the

system• There are different forms of welfare states in

various European countries

How did the crisis affect public sector?

• Emergency loans from IMF, the World Bank and EU

• Memorandums that impose austerity measures • Reduction of public sector budget• Change of the paying determination mode from

collective bargaining to unilateral government decisions

• Unemployment

What happened in the employment during the crisis ?Many countries have reduced significantly their public sector employees due to the fact that total unemployment has been increasing in the whole Europe and in a lot of the other countries worldwide

The measures of MoU for Greek economy

• Reduction of public expenditure• Deregulation of the labor market• Increase in indirect taxation• Enhancing competition in product and service

markets

Conclusion

• Economic crisis leads to job insecurity, unemployment and poverty

• The role of the welfare state after the memorandum in Greece has vanished

• The positive effects of memorandum in Greece has not even appear