Will it be happy holidays for Greece this Christmas? The EU decides

by Dec 16, 2016

It’s no secret that Greece has been suffering under the austerity measures it was made to enforce by European officials in order to address it’s economic woes. Indeed, the country is essentially at the mercy of it’s EU creditors, and the latest development of this is a tussle over the Greek Prime minister’s decision to alleviate some of the burden for the country’s pensioners this Christmas but how will the Greece EU relationship be affected?

Greece EU Pensions

We are almost at the halfway point of Greece’s bailout rescue program (worth 86 billion EUR) but the EU has decided to suspend the debt relief scheme, after Greece’s parliament decided to give a one-off payment to the 1.6 million of the country’s pensioners living off 800 euros a month or less. The gesture of goodwill is worth 617 million EUR. Figures across the EU have condemned the EU’s sharp response and suspension, calling for Greece to be treated with dignity.

Greece EU

It is just one of a long string of conflicts between the European Union and Greece, who have fared poorly under euro membership. New figures on Greek unemployment show very mild improvement (to the tune of .5%) but the overall number is still a whopping 22.6%. Unemployment levels for young Greeks was at 44.2 percent this summer, while the jobless rate is still the highest in the Eurozone.

Despite this, the Greek central bank is remarkably positive (some might say unrealistically), forecasting 2.5% growth in 2017 despite 0.1% growth this year. It says that if the bailout programme is successful, combined with the economic reforms the country has already made, then things could be looking up.

Everything hangs on whether the EU spreads some Christmas cheer and agrees to resume the debt relief measures. The Greek Prime Minister has held firm, saying that the payouts will not affect the country’s ability to meet it’s obligations to it’s lenders, as Greece has already achieved a surplus due to structural reforms.

Play Learn and Share on invstr to find out more about the markets.


Want to learn more about the markets and how to become a better investor?

Download the Invstr App now.

Download on the App Store           Download on Google Play


Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.


Get the app
Share This