• About Us
      Asia’s 1 st LEED Platinum Rated Campus

      Asia’s 1st LEED Platinum Rated Campus

      About Us

      • Chairman's Message
      • Vice Chairman & CEO
      • Dean's Message
      • Governing Council
      • Business Advisory Council
      • Academic Advisory Council
      • Work With Us
      • Mandatory Disclosure
      • Anti-Ragging Notice

      TERM ZERO

      Media

      • News
      • Events
      • In Media
      • Media Kit

      Rankings

      Accreditations

      NIRF

      Campus

      Blog

      Annual Events

      • Convocation
      • TEDxGLIMChennai
      • L'Attitude
      • Digital Symposium
      • Sangamitra
      • Annual Alumni Meet
      • SWIM
      • IEC
      • Human Capital Management
  • Programs
      Transform and Lead

      Transform and Lead

      Full Time Programs

      PGPM

      One Year MBA for professionals with work experience

      Learn More Apply Now

      PGDM

      Two Year MBA for professionals with 0-2 years of work experience

      Learn More Apply Now

      EXECUTIVE EDUCATION

      Partner with us for customized learning solutions for your organisation

      Learn More

      Corporate Programs

      PGXPM

      Executive program for Mid & Senior Level working professionals

      Learn More Apply Now APP. Deadline: 30th August, 2020

      PGPM Flex

      Weekend management program for young working professionals

      Learn More Apply Now APP. Deadline: 30th August, 2020

      MBA in Business Analytics

      Family Enterprises Management

  • Faculty & Research
      Ranked 6th

      Ranked 6 th

      by NIRF ranking in teaching and learning among all B-Schools in the country

      Faculty

      • Full Time Faculty
      • Visiting Faculty
      • Adjunct Faculty

      Research

      • Faculty Editors
      • Papers & Journal Publications
      • Case Studies & Books
      • Conference Proceedings

      Centers of Excellence

      • Centre For Excellence in Retail Management
      • Great Lakes Centre For Management Research
      • Kotler - Srinivasan Centre for Research in Marketing
      • Centre for Excellence in Business Analytics and Business Intelligence
      • CET
      • Union Bank Centre for Banking Excellence

      Conferences

      • NASMEI
      • Financial Conference
  • Recruiters & Companies

      “Great Location for Talent. We are happy to continue visiting and having budding professionals join us and grow their careers.”

      Anil Visal

      Partner - Deloitte India

      Campus Recruitment

      • Recruitment Process
      • PGDM Class Profile 2018-20
      • PGPM Class Profile 2019-20
      • Past Recuiters
      • Student Achievements
      • Recruiters Speak

      Internships

      • Recruitment Process
      • PGDM Class Profile 2019-21
      • Live Projects

      Placement Reports

      • PGPM
      • PGDM
      • Internship Report

      Leadership Series

      • Titans Speak
      • Industry Lecture Series
      • Thought Leader Series

      Talent Listings

  • Alumni

Greek People aspiration: A disaster in the making By Dr. Bobby Srinivasan and Dr. Sudhakar Balachandran

July 17, 2015 | Posted by bobbysrinivasan << back to blog

Nobody would have thought a year ago that Greece will jump the ship and take a huge risk to go on their own leaving the strong euro zone. The citizens of the Greece took a very bold step and voted a resounding ‘no’ to the collective Eurozone proposal of austerity measures to be adopted by them in order to get the necessary loan of around 7 billion euro from the European central bank. The results of the referendum held on Sunday the 5th of July 2015 came up with the following results.

 

Yes:     38.7%. Those who support the austerity measure to receive the loan.

 

No:      61.3%. Those who rejected it and are willing to face the consequences.

 

Based on the outcome, a summit of the Eurozone is called for Tuesday the 7th of July 2015. Greece in the past accepted the euro zone austerity measures to reduce the annual budget deficit. It clearly didn’t work. In the last 5 years their GDP has dropped by nearly 25% and the unemployment rate soared to 27%. When the Eurozone presented further austerity measures to Greece which involved increasing the already very high Value Added Tax (VAT) further and cutting old age pensions. P.M. Tsipras and his Syriza party though this was further humiliation. He and his party accepted the challenge in spite of the warning that a no vote would mean cutting bridges with Europe and driving Greece’s crippled financial system into outright bankruptcy dramatically worsening the country’s 5 yearlong depression.

This is a conversation between a student and his professor.

 

Student:          Professor, do you think P.M. Tsipras made the right decision in calling the referendum.

 

Professor:        I honestly don’t know what his choices were. He is the leader of the left wing party. But one thing is certain. It will not be easy for them to borrow money in the capital markets. Greece has one of the highest public debt.

 

Student:          Really how much does Greece owe and to whom?

 

Professor:        Glad you asked the question. Here are the numbers.

 

Country Amount (in Euros) owed to them by Greece
Germany 68.2 billion
France 43.8 billion
Italy 38.4 billion
Spain 25.0 billion
IMF 21.4 billion
ECB 18.1 billion
Netherlands 13.4 billion
United States 11.3 billion
U.K. 10.8 billion
Belgium 7.5 billion
Austria 5.9 billion
Finland 3.7 billion
Total 267.5 billion

 

Besides these Greece banks also carry 80 billion amount of debt.

 

Student:          Where did all this money go? After all Greek has a population of 11 million, which is lesser than say Bombay Metropolitan population.

 

Professor:        I will make a guess. Rich people in Greece have taken their country to the cleaner. Greek government has announced that they are willing give amnesty to all their citizens who have cheated the country and move the funds illegally to Switzerland as long as they repatriate the money back to Greece and pay 21% flat tax. According to some press report the amount could be as high as 200 billion euros.

 

Student:          It is such a shame that common people have to go through so much pain and anguish. Either way whether Greece is retained in the Eurozone or exit voluntarily or compulsorily. It will be a sad day for them. If they go back to their original currency Drachma whose value will drop horrendously and their standard of living will take a severe beating. I notice that India is not in the picture at all. Are we then safe?

 

Professor:        I hope so. The contagion effect on the global stock market is harder to predict. Let us watch as to how things will pan out in future.

 

Student:          Thanks for the informative huge session.

<< back to blog

Programs

PGPM - One Year MBA for professionals with 2+ years work experience

Learn More >

PGDM - Two Year MBA for graduates with 0-2 years work experience

Learn More >

Events

Union Bank Finance Conference
Dec 17, 2020

Networking with Champions
Nov 08, 2020

Harry Kraemer on Performance with A Purpose
Oct 08, 2020
Read more

Successful Women in Management (SWIM) Lecture Series
July 05, 2020
Read more

The Great Circle Alumni Talk Series
July 04, 2020
Read more

  • About Us
  • Programs
  • Faculty & Research
  • Recruiters & Companies
  • Alumni
  • Blog
  • Contact Us