Greece also known as Hellas and officially the Hellenic Republic is a country in southeastern Europe. Situated on the southern end of the Balkan Peninsula, Greece has land borders with Albania, the Republic of Macedonia and Bulgaria to the north, and Turkey to the east. The Aegean Sea lies to the east of mainland Greece, the Ionian Sea to the west, and the Mediterranean Sea to the south. Greece has the tenth longest coastline in the world at 14,880 km (9,246 mi) in length, featuring a vast number of islands (approximately 1400, of which 227 are inhabited), including Crete, the Dodecanese, the Cyclades, and the Ionian Islands among others. Eighty percent of Greece consists of mountains, of which Mount Olympus is the highest at 2,917 m (9,570 ft).
Modern Greece traces its roots to the civilisation of ancient Greece, generally considered the cradle of Western civilization. As such, it is the birthplace of democracy, Western philosophy, the Olympic Games, Western literature and historiography, political science, major scientific and mathematical principles, and Western drama, including both tragedy and comedy. This legacy is partly reflected in the 17 UNESCO World Heritage Sites located in Greece. The modern Greek state was established in 1830, following a victorious uprising against Ottoman rule.
A developed country with an advanced, high-income economy, a very high Human Development Index (22nd highest in the world as of 2010) and consistently high quality of life rankings, Greece has been a member of what is now the European Union since 1981 and the eurozone since 2001, NATO since 1952, and the European Space Agency since 2005. It is also a founding member of the United Nations, the OECD, and the Black Sea Economic Cooperation Organization. Athens is the capital and the largest city in the country.
By the end of 2009, as a result of a combination of international and local factors (respectively, the world financial crisis and uncontrolled government spending), the Greek economy faced its most severe crisis since 1974 as the Greek government revised its deficit from an estimated 6% to 12.7% of gross domestic product (GDP). In early 2010 it was revealed that successive Greek governments had been found to have consistently and deliberately misreported the country’s official economic statistics to keep within the monetary union guidelines. This had enabled Greek governments to spend beyond their means, while hiding the actual deficit from the EU overseers. In May 2010, the Greek government deficit was again revised and estimated to be 13.6% which was one of the highest in the world relative to GDP and public debt was forecast, according to some estimates, to hit 120% of GDP during 2010, one of the highest rates in the world.
As a consequence, there was a crisis in international confidence in Greece’s ability to repay its sovereign debt. In order to avert such a default, in May 2010 the other Eurozone countries, and the International Monetary Fund agreed to a rescue package which involved giving Greece an immediate €45 billion in bail-out loans, with more funds to follow, totaling €110 billion. In order to secure the funding, Greece was required to adopt harsh austerity measures to bring its deficit under control. Their implementation will be monitored and evaluated by the European Commission, the European Central Bank and the International Monetary Fund.
On 15 November 2010, the EU’s statistics body Eurostat revised the public finance and debt figure for Greece following an excessive deficit procedure methodological mission in Athens and put Greece’s 2009 government deficit at 15.4% of GDP and government debt at 126.8% of GDP making it the biggest deficit (as a percentage of GDP) amongst the EU member nations although some have speculated that Ireland’s in 2010 may prove to be worse.
