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Suggesting that Germany should not offer more aid to Greece

2020-05-23 来源: 51Due教员组 类别: Report范文

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下面为大家整理一篇优秀的essay代写范文-Suggesting that Germany should not offer more aid to Greece。本文讲述根据先前的研究和数据,应该建议德国不应向希腊提供更多援助,因为一方面,希腊将更多地依赖其他国家的援助,而不是专注于自己的计划。另一方面,这也会影响德国的经济。因此,我在研究中提出了以下问题:“德国应该帮助希腊吗?”

众所周知,国际业务涉及在两个或两个以上地点之间,在其政治边界之外的国家之间发生的所有商业交易。因此,就德国向希腊提供援助的情况而言,它有着密切的关系,因为它涉及国家之间的经济活动。这种情况也将影响跨境交易的进行方式。此外,德国向希腊提供的援助是经济资源,包括资本,技能和人员,这些资源将对整个欧元区产生重大影响。

 

Research topic

Based on the previous research and data, it should be proposed that Germany should not give more assistance to Greece, since on one hand, Greece will be more dependent on other countries’ assistance instead of focusing on its own program. On the other hand, it will also affect the economy in Germany. Therefore, I’ve come up with the following question for my research: “Should Germany help Greece?”

It is known that international business is concerned with all commercial transactions that occurred between two or more locations, nations outside of their political boundaries. Therefore, in terms of the case of Germany offering assistance to Greece it has a close relationship since it involves the economic activities between nations. And this case will also affect how the cross border transaction is made. Moreover, the assistance of Germany provided to Greece is economic resources that can include capital, skill and people that will have a great impact on the entire Eurozone.

All in all, for a research paper, this research topic can be more complicated. Initially, it has involved a lot of historical pasts in Europe. It is known that in the World War Two Germany has been the country, who has gained a lot of advantage, and Greece has offered its help to Germany, hence from moral and ethical point of view, people will think at the time of crisis, Germany should give its own assistance to Greece. However, based on the current situation, some other people may say it is improper to still provide help to Greece since this will make the country distract from its own projects to recover. On the other hand, once Germany provides more assistance it will cause problems for its own economy. Moreover, the relation between Greece and Germany is not only limited to these two specific country it is also concerned with the entire Eurozone.

 

Introduction

It is known that the financial crisis around the world has hit the economy and financial performance all of Europe hard. Due to the hit of financial crisis some vulnerable countries such as Greece have been involved in deep troubles. Therefore it has generated constant debates over whether Germany should help Greece to get rid of the financial crisis suffered. There are various opinions; some groups believe not only from economic sense but also from moral sense, Germany as the well performing country should provide its own assistance to Greece for it to recover. However, there are also conflicting ideas stating that it is not an obligation for Germany to help once again for countries like Greece since it will even create a more negative effect on both countries. Therefore, it is the purpose of this paper to conduct thorough analysis of whether Germany should provide its help to Greece as an economically poorly performing nation in Europe. The thesis statement of the paper is aimed to demonstrate the point that Germany should not provide help to Greece.

Initially, for many times in history Germany has offered its assistance to Greece due to its low economic performance. Hence, it has developed a habit or awareness for Greece that once they are in deep troubles the well performing country should contribute something to the poorly performing country since they are all in the Euro Zone. However, this kind of attitude can not only help Greece get out of financial crisis, on the contrary it can even further allow Greece to become more dependent on other countries in Euro Zone. On the other hand, it is noted that Greece has already planned some programs for the country itself to recover from its poor economic performance, the intervention of Germany will distract Greece from operating its own programs and it will also interrupt its own progress. Thence, it is better for Germany to leave enough time and space for the country itself to rely on itself to gain better economic performance and solve financial crisis issues. Thirdly, it should be known that the assistance provided by Germany either in monetary form or other forms will create issues within Germany. First of all, the nationals in Germany will not be content with this strategy and it will cause upheavals in German society. On the other hand, it will also affect the economy in Germany since it has already has its economic plan well implemented, once there is an alteration and change it will result in different consequences. More importantly, more assistance from Germany to Greece will bring more conflicts in the entire Eurozone, as other worse performed country will also want to get rid of the financial crisis through the help of other stronger countries.

In order to fully analyze and demonstrate the validity and rationality of the point put forward, the paper will be divided into four parts. The first part will provide a well-based literature review so as to offer different views whether Germany should help Greece to get rid of financial crisis. In the literature review it will have several comparison and contrast example to provide an objective view of the issues involved. The second part will be the methodology that will explain through what methods the research is conducted. The third part is partial results that will demonstrate the findings. The last part will conclude the entire paper.

 

Literature review

The arrival of the economic recession in the world during October, 2008 highly triggered debt crisis in Europe with the Greek government adverse effects in such crisis. The major causes of the debt crisis in Greece are believed to be the structural weakness of the economy of Greece and debt to the levels of GDP as well as high structural deficits that existed in the public accounts of the country for more than a decade (Federal Ministry of Finance, 2014). Investors have been held back by the by fears concerning the debt crisis of the country and they heavily questioned the ability of Greece to meet the debt obligations it had since the levels of debts of the government highly increased.

The question as to whether Germany should save Greece from financial debts is a question that has been received by mixed reactions from the voters in the country. One can reason that German, being one of the rich Europe’s rich countries should aggressively make contributions that would help Greece overcome their debt problems. The rate at which the economy of Germany grows on the other hand makes influences the country to take the opposite direction towards helping Greece. The act of balancing the responsibility of helping other countries in Europe and managing the growth of its economy has become an emerging issue in Germany and leaves it torn between helping Greece or concentrating of the issues of its economy.

Historically it is true to argue that Germany should help Greece solve the problem of financial crisis. Greece helped Germany during World War II and it is argued that the aid they gave was the root to their financial crisis. Germany should thus uphold moral standards by giving aid to Greece to bail them from the current financial problems that the country is faced with (Sfakianakis, 2012). The fact that Greece helped Germany in World War II alone does not give the country a guarantee to get financial aid from Germany. Several issues hold Germany back from bailing Greece out of their current financial situation and various arguments have risen regarding the right choice that Germany should make regarding the crisis in Greece.

The fact that Greece gave aid to Germany during World War II does not make it deserve financial bailment from Germany (Sfakianakis, 2012). Germany is likely to damage their political and economic interests when they permit Greece to default their debts. Financial aid, if given to Greece, may cause a collapse in the economics of Europe’s trading partners. The cost of such a collapse to Germany may become more adverse than the cost they would incur in helping Greece (Sfakianakis, 2012).

Countries that are opposed to the idea of bailing out Greece may restrict the trade with Germany if it does so. This may pose great effects to Germany as it will definitely result to a fall in the economy. Some countries may also view it that Germany has given political interests in Greece. Such countries, especially if they are foes of the Greece government will generally restrict their relationship with Germany. This may mean that Germany will suffer both economically and politically if they give Greece financial aid. The costs Germany is likely to incur is far much greater that the benefits of helping Greece. The country thus needs to highly consider the decision before taking any actions.

The importance of Greece in the Euro zone is very important to various countries, Germany included. If Greece falls out of the zone, many countries will face a series of impacts as changes in relationships and trade will occur. The importance of Greece in the Euro zone makes it necessary for Germany to continue bailing the country from its financial crisis so that it continues being part of the region. Though this may convince Germany to help Greece, the dilemma comes in the issue of German voters who are not expected to accept the idea (Plumer, 2012). The voters have the belief that rescuing Greece will never solve the root problem, but will instead add injury to the economy of Germany. The decision is made by the voters and the head of government has no say once the voters turn down the idea.

The idea of providing assistance to Greece has been seen by Germany as an issue of seeking assistance to problems that Greece created for itself. The assistance will not solve the problem as Greece will not implement measures to curb any future financial crisis. They will rely on aid to solve even their future problems. This has made Germany come out clearly and state that Greece should cease from seeking further assistance from other countries and find a favorable solution to the problem (Osborne, 2012).

Greece is just one among the 17 nations in Euro zone that are faced with financial crisis as a result of debts owed to other countries. Helping Greece may be viewed as a measure Germany is taking to help countries in Euro zone with financial crisis solves their problems. It may mean Germany will take the initiative of helping the other countries after helping Greece. This obligation is not possible, and helping Greece alone may result to rivalry with other countries. Germany thus see it wise for Greece to fulfill the promises it made to other countries when taking debts (Osborne, 2012). This will make things even as Germany cannot help all the other countries settle their depts.

The growth of the economy of Germany has been as a result of the relations in the whole Euro zone. Making a decision that will hinder such relationships may prove vital for the country. The influence that Germany has in the whole region makes it necessary for the country to put its focus on the whole region, rather than in one country (German election Blog, 2013). The voters in Germany believe that the country should put more emphasis on issues that benefit the world rather than concentrating on the crisis in one given country. The focus of Germany should not be in the financial problems of Greece, but in expanding relationships with other countries in the world.

The government of Greece on its side should also stop concentrating on asking form Germany and find the long-term solution to the problem of financial crisis. The government should come up with programs for reform that will ensure the problem is fully solved and the image of the country fully restored in the region. The debt the country owes investors and other nations have made it lose trust among many partners, affecting the relationship of the country with other nations in the Euro zone (Kirschbaum, 2012). Greece should stop concentrating on asking for the help of other countries to restore their economy and should instead implement immediate reforms that aim at ensuring the economy and trust is restored in the region

Methodology

This research paper is to answer the question whether Germany government should provide assistance to Greece considering the current financial crisis and debt crisis of Greece. For this purpose, there are a series of certain questions that need to be addressed.

In the first place, the connection between Greece and Germany is supposed to be clear. What is the historical and political relation between Greece and Germany? What is the current economic and societal situation of the two countries, and what was the situation in the past? In addition to Greece and Germany themselves, are there some other countries, international organizations involved in the international relation between Greece and Germany? The second issue that needed to be addressed is the meaning, objective and result of international aid. This issue needs to be considered practically. As far as Germany is concerned, what kind of assistance should Germany provide? How to determine the extent and length of the assistance? Should Germany just help with Greece’s recovery slightly or try as much as it can? Would it affect the economy, society international affairs and other stuffs of Germany? What kind of crisis that Germany may already have itself? What is the limitation of its aid to other nations? The third issue might be the most fundamental one, that is, the origin of the crisis of Greece and the corresponding solution to it. What cause the debt crisis in Greece? Is there any critical problem with the political and financial system of Greece? Is there any country that encounters the same problem? Could the experience and history of other countries be used for reference? What measures could Greece government take by itself rather than seek assistance from other countries? Anyway, there are a wide range of factors to be considered, and since it is international affair to be discussed, it is quite important to do tons of research and think cautiously when drawing to a conclusion.

In order to find answers to the questions above, several resources have been resorted to, including related official websites, research papers, books, news and newspapers and so on. From the resources above, some significant data, statistics, and related information could be found and used to support the theme of the paper. Moreover, when it comes to diplomatic strategy, international relation and affairs, the answers are not always on the table. Some resources are quite important. For example, consulting someone who works in related field or position or reading some essays on blog could be quite useful sometimes. Although such resources may be less professional and convincing sometimes in contrast to some research papers or documents from government websites, it could widen views and provide some inspirations of thought from time to time. Anyway, many countries have their own political stands, relation network and national crisis themselves which are quite complicated. One bit of negligence could lead to big mistakes. Therefore, every step needs to be careful and every factor should be considered seriously.

Results and Findings

This research has put forward the question “Should Germany help Greece?” The question has been analyzed in the literature review. According to what have been mentioned in previous parts of this paper, the obvious answer to the question is no. Germany should not help Greece.

The findings can be divided into four parts. Firstly, helping Greece will indulge her to depend on other countries’ assistance instead of focusing on its own programme. Secondly, helping Greece will also affect the economy and social stability in Germany. Voters of Germany have the belief that rescuing Greece will never solve the root problem. Thirdly, helping Greece will pose a threat to the economics of Europe’s trading partners. And countries that are opposed to the idea of bailing out Greece may restrict the trade with Germany if it does so. Fourthly, helping Greece set a bad example for other Eurozone countries. Germany should focus on a bigger area instead of a given country.

In the background that Greece has received help from International Monetary Fund (IMF) with conditions. It should stick to its original programme instead of asking for help. And Germany should urge Greece to fulfill the conditions. It would be hard but necessary for Greece to make a reform. There are stubborn political problems in the Greek debt crisis. The Greek government may not want to make a reform unless the situation forces it to. So Germany may as well give Greece a push by refusing to help. And international efforts should be taken to ensure that Greece is acting in accord with its commitments to the IMF.

This research has pointed out that helping Greece will be bad for the economy and social stability in Germany. But there is no detail about how bad it will be. It will be better if additional research give some economic data and testimonies to illustrate the influence of helping Greece. The literature view has mentioned that helping Greece will set a bad example for other countries. But it is hard to predict how other countries will respond to this bad example. To improve the research, it may be helpful to compare historical economic events with the current situation. Although the situation has changed, history still has reference value.

  Conclusion

Previous research has explained why Germany should not give more assistance to Greece in economic term. It will make Greece more dependent on other countries’ assistance instead of focusing on its own program. On the other hand, it will also affect the economy in Germany. While this research blends in historical factors, ethical factors and political factors.

Historical aid that Greece gave Germany did not deserve or guarantee financial bailment today. Helping Greece not only does harm to Germany in the aspects of social stability and economy, but also pose a threat to the economics of Europe’s trading partners. Moreover, Countries that are opposed to the idea of bailing out Greece may restrict the trade with Germany if it does so, which means that Germany will suffer both economically and politically if they give Greece financial aid. And voters of Germany do not want to help Greece. Helping Greece may also set a bad example for other worse performed countries in Eurozone. Apparently, Germany cannot help all those countries.

Therefore, helping Greece not only does harm to Germany, but also set a bad example for other countries. And it may indulge Greece to depend on other countries’ help. Taking historical factors, ethical factors and political factors into account has made this research more complicated.

When it comes to the research topic “Should Germany help Greece?” It is important to investigate its economic impact and political impact of this issue. It is obvious that the answer to the topic question not only influences Germany and Greece, but also has an impact on the whole world.

Here comes to a topic for further research: Why the debt crisis broke up in Greece. Some countries have more debt than Greece, for example, Japan, St. Kitts and Nevis, Lebanon, Jamaica (Danielle Kurtzleben, 2011). Those countries were more in debt than Greece according to the “Debt as Percent of GDP” (Danielle Kurtzleben, 2011). But debt crisis did not break up in those countries. Then, why Greece? To answer this question, it is reasonable to dig up a lot of economic data. However, it is not enough. The true cause of the Greek sovereign debt crisis is the failure of Greek governance system, a bad management of public finances (Nasos Mihalakas, 2012). Then, it is natural to ask what’s the problem with Greek governance system. Why did Greek government perform so badly? A lot of research can be done in terms of the Greek system of governance.

Come back to the topic “Should Germany help Greece?” The answer is no. If Greece does not learn a lesson in the debt crisis, the same mistake will repeat one day. And Greek government really needs to take action to reform her system of governance.

 

References

Bryman, A. (2012). Social research methods. Oxford: Oxford university press.

Reinhart, C. M., & Rogoff, K. (2009). This time is different: Eight centuries of financial folly. Princeton University Press.

Sapsford, R., & Jupp, V. (Eds.). (2006). Data collection and analysis. London: Sage.

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