Greek Financial Crisis threatens to spread to other countries

Monday, 22 February 2010 11:01 AM Sierra Mae Paraan

Dubbed the “Greek Tragedy”, the Greek Financial Crisis now threatens to affect other countries in the European Union (EU), as they are all bound by the Euro. When Greek Prime Minister George Papandreou assumed office last October, the country's deficit was close to 13% of GDP, more than four times the EU's 3% limit.

The Financial Crisis has become a political test for the bloc, which has vowed never to drop country members despite hard times. Still, Center for European Reform Economist Simon Tilford said he believes that countries which have become uncompetitive in the Euro zone will have weak public finances.

Deutsche Welle Online (German World Online) pointed out that Greece's budget deficit, 12.7% at the moment, is mushrooming. There are even speculations about the crisis spilling over abroad -- Niall Ferguson said that there might be a great deal of “leakage” from open economies in this globalised world, according to FT.com. The possible spread of the Greek Financial Crisis to global superpowers United States and Japan could result to global bond yields which could affect thriving as well as developing countries such as the Philippines.

'Greek Tragedy' hits Filipino migrants

As Greece plunges deeper into recession, thousands of jobs close down every month. Migrants like overseas Filipino workers, who offer cheap labor and have minimal demands for recompense, are the ones first affected.

As of 2008, 9.4% of Filipinos who work abroad are based in Europe.

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