what was the PRIMARY cause of the current Greece Crisis Exce

what was the PRIMARY cause of the current Greece Crisis? Excessive government spending, lack o

Solution

The Greek economic crisis is the result of multiple reasons, like slow down of GDP growth rate, higher government deficit and government debt. But the primary reason is excessive government spending that was not matched by adequate tax reveneue. This resulted in highe government (fiscal) deficit which was funded by higher borrowing. Higher government debt led to the soverign debt crisis in Greece.