In a bid to secure a bailout from the debt it has accumulated from its cousins in Europe, the Greek government came up with a couple of proposals for economic reforms. This was in the nick of time for the acceptance of some austerity measures by the Greeks in return for a bailout by EU members. Some tax reforms as well as a change in pension policies were demanded by the creditors.
The Greeks expressed their angst against the proposals in a referendum. The measures were to precede a third bailout granted to Greece in the absence of which Greece will have to stage an exit from the Euro zone. Greece will have to begin printing its own currency in this case. The economy in Greece is going to suffer a lot if this happens.
The government in Greece badly needs a bailout program. It doesn’t have enough money to pay salaries. Besides this, it has a lot of pension to be paid too.
A three year bailout program is being sought by Greece, which is to include a reduction of its debt. Reduction of Greek debt is a contentious issue viewed with a different angle by different quarters. While European Council President Donald Tusk said Greece's creditors need to develop a realistic response to the crisis, German Chancellor Angela Merkel turned out all demands of a debt reduction as unrealistic.
Greece has downed shutters on all its banking and financial institutions in order to maintain a check on the money in the national coffers. A limit has been imposed on the withdrawal one can make from ATMs.