Berlin – Some call him the most, however, warn before – before the “Grexit”. The stands in the opinion of many politicians for years repeatedly inevitable before when it is at your fingertips in the debt dispute with Athens Spitz. But what that is, and how that might work is unclear.
The always to follow new acts of Greek debt drama, is also difficult because it is argued with bulky terms. Among the current favorites in continuous conflict with the Greeks is one of the “primary surplus”. He is considered as the central benchmark for rehabilitation of the chronically clammy state budget
Which terms are still important -. And what is behind it
?
– Grexit: The slogan was invented in the debt crisis. The concept of art consists of the English words for Greece (Greece) and exit (Exit). Grexit stands for something really impossible:. An exit or expulsion of Greece from the euro zone
Contractually is indeed regulated in detail how in the Euro zone enters. Nowhere, however, is that a country leaving the euro zone, or may be even excluded. For the European Commission is clear: Without leaving the EU no departure from the euro zone. The idea behind the “Grexit scenario”: Would Greece “soft” insert instead of “hard” euro again a drachma, the Greek economy could offer a cheap own currency their products internationally much cheaper
– GRACCIDENT: Occasionally, also warned of unintended euros off the Greeks. The technical term for this is from “Greece” (Greece) and the English word “accident” (accident) – where the word in English can also stand for Random. It is sometimes “Graccident” combined with “Grexit» on «Grexident». This refers to a rather accidental slip into the euro-exit, the fact no one wants – but which is unavoidable because Athens run out of money. This scenario would be: Because, for example, civil servants would be paid, Athens would spend a kind second currency – the reintroduction of the drachma by the back door, which is interpreted by some experts as a de facto end of the Euro-membership
– state bankruptcy: For States there are – unlike private individuals or companies – so far no German Insolvency Act. This lack also clear rules when entering a state of bankruptcy case and, as then, proceed. An inability to pay does not mean automatically the end of Euro membership – bankruptcy and “Grexit” are therefore not the same. In the international financial community of the bankruptcy case (“Default”) will be established as a rule of rating agencies; These agencies assess the creditworthiness – and watch therefore also a hawk, whether states their debts, “operate”, that is, pay interest and repay debt. Major rating agencies have already stated that they do not demote Athens to “Default” if Greece no longer serves its IMF loans. For some, this would even apply if Greek bonds can not serve, which are held by the European Central Bank
– primary surplus. The biggest problem of Greeks are the huge debt. They make currently around 180 percent of economic output from – an upward trend since the Greek government are still more than he takes. Reason for this ongoing state deficit: the interest that must be paid for the debts. If we add this interest (and principal) does not, therefore considered only the “primary budget”, then Athens for the first time written in the current fiscal at least 2013 and 2014 has long been in the black.
Experts call this” primary surplus “. The higher the fails, the lower the pressure to save on expenses or increase revenue. To date, was a permanent “primary surplus” of 4.5 percent of economic output than necessary – so the debt does not increase further still. But today it is clear that in the short term even the originally targeted 3 percent in it. The financiers call 1 percent for the current year, Greece wants to date even less
– RECESSION:. Is that Athens, locks against the original budgetary targets is, at the economic development of the country’s crisis. The Greek economy had shrunk for years and only in 2014 returned to a growth path. A flash in the pan, because the country has fallen early 2015 again into recession. Because of the debt dispute the new Greek government with its financial backers of this burglary had been feared. Experts speak of a recession, when the economy is shrinking consecutively in two quarters to the previous quarter. Result of a recession: For the state tax revenues break away – and because of rising unemployment to rise, for example, expenditure
– BORROWING:. States need money. Because tax revenues usually not enough, you also borrow something. This takes place in the capital market, where countries sell so-called bonds to investors. A bond is a kind of promissory note. It says, when the state repays the money and how much interest he has to pay
– haircut:. Sometimes a state has so many debts that he can not repay, and also lacks the money for interest payments. Then he tries to reach that its creditors waive part of their money. This is called haircut – or because of financial jargon often English «haircut». This creates financial leeway. However, the mistrust, to borrow the State in the future once more money is growing
– rescue package. Since 2010, more and more countries had because of high debts confidence in funders lost. For them, the euro partners stressed on a rescue package. His name was first EFSF, was later replaced by the ESM. In fact, there is a fund, can get loan assistance to low interest from the clammy States. When Greece (ie to the IMF or the ECB) no longer serves its debt to one of the institutions, the rescue package could be the recent emergency loans due immediately. According to economists, this is only a theoretical risk because this would inevitably lead to the Greek default
– TROIKA:. Was in the euro debt crisis used term for the trio from the International Monetary Fund (IMF), European Central Bank (ECB) and European Commission. You control the demanded reform progress. In the euro-crisis Greece, the Troika is therefore become the bogeyman. In his letter to the Euro Group Athens now speaks of “institutions”. The euro partners do not want to use the word “troika”. In official documents was anyway never the talk of the “Troika”.
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