title: Greek government-debt crisis

text: A trade deficit means that a country is consuming more than it produces, which requires borrowing/direct investment from other countries. Both the Greek trade deficit and budget deficit rose from below 5% of GDP in 1999 to peak around 15% of GDP in the 2008–2009 periods. One driver of the investment inflow was Greece's membership in the EU and the Eurozone. Greece was perceived as a higher credit risk alone than it was as a member of the Eurozone, which implied that investors felt the EU would bring discipline to its finances and support Greece in the event of problems.


title: Greek government-debt crisis

text: As the Great Recession spread to Europe, the amount of funds lent from the European core countries (e.g. Germany) to the peripheral countries such as Greece began to decline. Reports in 2009 of Greek fiscal mismanagement and deception increased borrowing costs; the combination meant Greece could no longer borrow to finance its trade and budget deficits at an affordable cost.


title: Greek government-debt crisis

text: A country facing a 'sudden stop' in private investment and a high (local currency) debt load typically allows its currency to depreciate to encourage investment and to pay back the debt in devalued currency. This was not possible while Greece remained in the euro. "However, the sudden stop has not prompted the European periphery countries to move toward devaluation by abandoning the euro, in part because capital transfers from euro-area partners have allowed them to finance current account deficits". In addition, to become more competitive, Greek wages fell nearly 20% from mid-2010 to 2014, a form of deflation. This significantly reduced income and GDP, resulting in a severe recession, decline in tax receipts and a significant rise in the debt-to-GDP ratio. Unemployment reached nearly 25%, from below 10% in 2003. Significant government spending cuts helped the Greek government return to a primary budget surplus by 2014 (collecting more revenue than it paid out, excluding interest).


title: Greek government-debt crisis

text: The Greek crisis was triggered by the turmoil of the Great Recession, which led the budget deficits of several Western nations to reach or exceed 10% of GDP. In the case of Greece, the high budget deficit (which, after several corrections, was revealed that it had been allowed to reach 10.2% and 15.1% of GDP in 2008 and 2009, respectively) was coupled with a high public debt to GDP ratio (which, until then, was relatively stable for several years, at just above 100% of GDP- as calculated after all corrections). Thus, the country appeared to lose control of its public debt to GDP ratio, which already reached 127% of GDP in 2009. In contrast, Italy was able (despite the crisis) to keep its 2009 budget deficit at 5.1% of GDP, which was crucial, given that it had a public debt to GDP ratio comparable to Greece's.


title: Greek government-debt crisis

text: In addition, being a member of the Eurozone, Greece had essentially no autonomous monetary policy flexibility.


title: Greek government-debt crisis

text: Finally, there was an effect of controversies about Greek statistics (due the aforementioned drastic budget deficit revisions which led to an increase in the calculated value of the Greek public debt by about 10%, i.e., public debt to GDP ratio of about 100% until 2007), while there have been arguments about a possible effect of media reports. Consequently, Greece was "punished" by the markets which increased borrowing rates, making it impossible for the country to finance its debt since early 2010.


title: Greek government-debt crisis

text: In January 2010, the Greek Ministry of Finance published "Stability and Growth Program 2010". The report listed five main causes, poor GDP growth, government debt and deficits, budget compliance and data credibility. Causes found by others included excess government spending, current account deficits, tax avoidance and tax evasion.


title: Greek government-debt crisis

text: After 2008, GDP growth was lower than the Greek national statistical agency had anticipated. The Greek Ministry of Finance reported the need to improve competitiveness by reducing salaries and bureaucracy and to redirect governmental spending from non-growth sectors such as the military into growth-stimulating sectors.


title: Greek government-debt crisis

text: The global financial crisis had a particularly large negative impact on GDP growth rates in Greece. Two of the country's largest earners, tourism and shipping were badly affected by the downturn, with revenues falling 15% in 2009.


title: Greek government-debt crisis

text: Fiscal imbalances developed from 2004 to 2009: "output increased in nominal terms by 40%, while central government primary expenditures increased by 87% against an increase of only 31% in tax revenues." The Ministry intended to implement real expenditure cuts that would allow expenditures to grow 3.8% from 2009 to 2013, well below expected inflation at 6.9%. Overall revenues were expected to grow 31.5% from 2009 to 2013, secured by new, higher taxes and by a major reform of the ineffective tax collection system. The deficit needed to decline to a level compatible with a declining debt-to-GDP ratio.


title: Greek government-debt crisis

text: The debt increased in 2009 due to the higher-than-expected government deficit and higher debt-service costs. The Greek government assessed that structural economic reforms would be insufficient, as the debt would still increase to an unsustainable level before the positive results of reforms could be achieved. In addition to structural reforms, permanent and temporary austerity measures (with a size relative to GDP of 4.0% in 2010, 3.1% in 2011, 2.8% in 2012 and 0.8% in 2013) were needed. Reforms and austerity measures, in combination with an expected return of positive economic growth in 2011, would reduce the baseline deficit from €30.6 billion in 2009 to €5.7 billion in 2013, while the debt/GDP ratio would stabilize at 120% in 2010–2011 and decline in 2012 and 2013.


title: Greek government-debt crisis

text: After 1993, the debt-to-GDP ratio remained above 94%. The crisis caused the debt level to exceed the maximum sustainable level, defined by IMF economists to be 120%. According to the report "The Economic Adjustment Programme for Greece" published by the EU Commission in October 2011, the debt level was expected to reach 198% in 2012, if the proposed debt restructure agreement was not implemented.


title: Greek government-debt crisis

text: Budget compliance was acknowledged to need improvement. For 2009 it was found to be "a lot worse than normal, due to economic control being more lax in a year with political elections". The government wanted to strengthen the monitoring system in 2010, making it possible to track revenues and expenses, at both national and local levels.


title: Greek government-debt crisis

text: Problems with unreliable data had existed since Greece applied for Euro membership in 1999. In the five years from 2005 to 2009, Eurostat noted reservations about Greek fiscal data in five semiannual assessments of the quality of EU member states' public finance statistics. In its January 2010 report on Greek Government Deficit and Debt Statistics, the European Commission/Eurostat wrote (page 28): "On five occasions since 2004 reservations have been expressed by Eurostat on the Greek data in the biannual press release on deficit and debt data. When the Greek EDP data have been published without reservations, this has been the result of Eurostat interventions before or during the notification period in order to correct mistakes or inappropriate recording, with the result of increasing the notified deficit." Previously reported figures were consistently revised down. The misreported data made it impossible to predict GDP growth, deficit and debt. By the end of each year, all were below estimates. Data problems had been evident over time in several other countries, but in the case of Greece, the problems were so persistent and so severe that the European Commission/Eurostat wrote in its January 2010 Report on Greek Government Deficit and Debt Statistics (page 3): "Revisions of this magnitude in the estimated past government deficit ratios have been extremely rare in the other EU Member States, but have taken place for Greece on several occasions. These most recent revisions are an illustration of the lack of quality of the Greek fiscal statistics (and of macroeconomic statistics in general) and show that the progress in the compilation of fiscal statistics in Greece, and the intense scrutiny of the Greek fiscal data by Eurostat since 2004 (including 10 EDP visits and 5 reservations on the notified data), have not sufficed to bring the quality of Greek fiscal data to the level reached by other EU Member States." And the same report further noted (page 7): "The partners in the ESS [European Statistical System] are supposed to cooperate in good faith. Deliberate misreporting or fraud is not foreseen in the regulation."


title: Greek government-debt crisis

text: In April 2010, in the context of the semiannual notification of deficit and debt statistics under the EU's Excessive Deficit Procedure, the Greek government deficit for years 2006–2008 was revised upward by about 1.5–2 percentage points for each year and the deficit for 2009 was estimated for the first time at 13.6%, the second highest in the EU relative to GDP behind Ireland at 14.3% and the United Kingdom third at 11.5%. Greek government debt for 2009 was estimated at 115.1% of GDP, which was the second highest in the EU after Italy's 115.8%. Yet, these deficit and debt statistics reported by Greece were again published with reservation by Eurostat, "due to uncertainties on the surplus of social security funds for 2009, on the classification of some public entities and on the recording of off-market swaps."


title: Greek government-debt crisis

text: The revised statistics revealed that Greece from 2000 to 2010 had exceeded the Eurozone stability criteria, with yearly deficits exceeding the recommended maximum limit at 3.0% of GDP, and with the debt level significantly above the limit of 60% of GDP. It is widely accepted that the persistent misreporting and lack of credibility of Greece's official statistics over many years was an important enabling condition for the buildup of Greece's fiscal problems and eventually its debt crisis. The February 2014 Report of the European Parliament on the enquiry on the role and operations of the Troika (ECB, Commission and IMF) with regard to the euro area programme countries (paragraph 5) states: "[The European Parliament] is of the opinion that the problematic situation of Greece was also due to statistical fraud in the years preceding the setting-up of the programme".


title: Greek government-debt crisis

text: The Greek economy was one of the Eurozone's fastest growing from 2000 to 2007, averaging 4.2% annually, as foreign capital flooded in. This capital inflow coincided with a higher budget deficit.


title: Greek government-debt crisis

text: Greece had budget surpluses from 1960 to 1973, but thereafter it had budget deficits. From 1974 to 1980 the government had budget deficits below 3% of GDP, while 1981–2013 deficits were above 3%.


title: Greek government-debt crisis

text: An editorial published by "Kathimerini" claimed that after the removal of the right-wing military junta in 1974, Greek governments wanted to bring left-leaning Greeks into the economic mainstream and so ran large deficits to finance military expenditures, public sector jobs, pensions and other social benefits.


title: Greek government-debt crisis

text: In 2008, Greece was the largest importer of conventional weapons in Europe and its military spending was the highest in the European Union relative to the country's GDP, reaching twice the European average. Even in 2013, Greece had the second-biggest defense spending in NATO as a percentage of GDP, after the US.


title: Greek government-debt crisis

text: Pre-Euro, currency devaluation helped to finance Greek government borrowing. Thereafter this tool disappeared. Greece was able to continue borrowing because of the lower interest rates for Euro bonds, in combination with strong GDP growth.


title: Greek government-debt crisis

text: Economist Paul Krugman wrote, "What we’re basically looking at ... is a balance of payments problem, in which capital flooded south after the creation of the euro, leading to overvaluation in southern Europe" and "In truth, this has never been a fiscal crisis at its root; it has always been a balance of payments crisis that manifests itself in part in budget problems, which have then been pushed onto the center of the stage by ideology."


title: Greek government-debt crisis

text: The translation of trade deficits to budget deficits works through sectoral balances. Greece ran current account (trade) deficits averaging 9.1% GDP from 2000 to 2011. By definition, a trade deficit requires capital inflow (mainly borrowing) to fund; this is referred to as a capital surplus or foreign financial surplus.


title: Greek government-debt crisis

text: Greece's large budget deficit was funded by running a large foreign financial surplus. As the inflow of money stopped during the crisis, reducing the foreign financial surplus, Greece was forced to reduce its budget deficit substantially. Countries facing such a sudden reversal in capital flows typically devalue their currencies to resume the inflow of capital; however, Greece was unable to do this, and so has instead suffered significant income (GDP) reduction, an internal form of devaluation.


title: Greek government-debt crisis

text: Before the crisis, Greece was one of EU's worst performers according to Transparency International's Corruption Perception Index (see table). At some time during the culmination of the crisis, it temporarily became the worst performer. One bailout condition was to implement an anti-corruption strategy; by 2017 the situation had improved, but the respective score remained one of the worst in the EU.


title: Greek government-debt crisis

text: The ability to pay its debts depends greatly on the amount of tax the government is able to collect. In Greece, tax receipts were consistently below the expected level. Data for 2012 indicated that the Greek "shadow economy" or "underground economy", from which little or no tax was collected, was a full 24.3% of GDP – compared with 28.6% for Estonia, 26.5% for Latvia, 21.6% for Italy, 17.1% for Belgium, 14.7% for Sweden, 13.7% for Finland, and 13.5% for Germany. (The situation had improved for Greece, along with most EU countries, by 2017). Given that tax evasion is correlated with the percentage of working population that is self-employed, the result was predictable in Greece, where in 2013 the percentage of self-employed workers was more than double the EU average.


title: Greek government-debt crisis

text: Also in 2012, Swiss estimates suggested that Greeks had some 20 billion euros in Switzerland of which only one percent had been declared as taxable in Greece. In 2015, estimates indicated that the amount of evaded taxes stored in Swiss banks was around 80 billion euros.


title: Greek government-debt crisis

text: A mid-2017 report indicated Greeks were being "taxed to the hilt" and many believed that the risk of penalties for tax evasion were less serious than the risk of bankruptcy. One method of evasion that was continuing was the so-called "black market" or "grey economy" or "underground economy": work is done for cash payment which is not declared as income; as well, VAT is not collected and remitted. A January 2017 report by the DiaNEOsis think-tank indicated that unpaid taxes in Greece at the time totaled approximately 95 billion euros, up from 76 billion euros in 2015, much of it was expected to be uncollectable. The same study estimated that the loss to the government as a result of tax evasion was between 6% and 9% of the country's GDP, or roughly between 11 billion and 16 billion euros per annum.


title: Greek government-debt crisis

text: The shortfall in the collection of VAT (roughly, sales tax) was also significant. In 2014, the government collected 28% less than was owed to it; this shortfall was about double the average for the EU. The uncollected amount that year was about 4.9 billion euros. The 2017 DiaNEOsis study estimated that 3.5% of GDP was lost due to VAT fraud, while losses due to smuggling of alcohol, tobacco and petrol amounted to approximately another 0.5% of the country's GDP.


title: Greek government-debt crisis

text: Following similar actions by the United Kingdom and Germany, the Greek government was in talks with Switzerland in 2011, to try to force Swiss banks to reveal information on the bank accounts of Greek citizens. The Ministry of Finance stated that Greeks with Swiss bank accounts would be required either to pay a tax or to reveal information such as the identity of the bank account holder to the Greek internal revenue services. The Greek and Swiss governments hoped to reach a deal on the matter by the end of 2011.


title: Greek government-debt crisis

text: The solution demanded by Greece had still not been effected as of 2015; when there was an estimated €80 billion of taxes evaded on Swiss bank accounts. But by then the Greek and Swiss governments were seriously negotiating a tax treaty to address this issue. On 1 March 2016 Switzerland ratified an agreement creating a new tax transparency law to fight tax evasion more effectively. Starting in 2018, banks in both Greece and Switzerland were to exchange information about the bank accounts of citizens of the other country, to minimize the possibility of hiding untaxed income.


title: Greek government-debt crisis

text: In 2016 and 2017, the government was encouraging the use of credit cards and debit cards to pay for goods and services in order to reduce cash only payments. By January 2017, taxpayers were only granted tax allowances or deductions when payments were made electronically, with a "paper trail" of the transactions that the government could easily audit. This was expected to reduce the problem of businesses taking payments but not issuing an invoice. This tactic had been used by various companies to avoid payment of VAT as well as income tax.


title: Greek government-debt crisis

text: By 28 July 2017, numerous businesses were required by law to install a point of sale (POS) device to enable them to accept payment by credit or debit card. Failure to comply can lead to fines of up to €1,500. The requirement applied to around 400,000 firms or individuals in 85 professions. The greater use of cards had helped to achieve significant increases in VAT receipts in 2016.


title: Greek government-debt crisis

text: Despite the crisis, the Greek government's bond auction in January 2010 of €8bn 5-year bonds was 4x over-subscribed. The next auction (March) sold €5bn in 10-year bonds reached 3x. However, yields (interest rates) increased, which worsened the deficit. In April 2010, it was estimated that up to 70% of Greek government bonds were held by foreign investors, primarily banks.


title: Greek government-debt crisis

text: In April, after publication of GDP data which showed an intermittent period of recession starting in 2007, credit rating agencies then downgraded Greek bonds to junk status in late April 2010. This froze private capital markets, and put Greece in danger of sovereign default without a bailout.


title: Greek government-debt crisis

text: On 2 May, the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF) (the Troika) launched a bailout loan to rescue Greece from sovereign default and cover its financial needs through June 2013, conditional on implementation of austerity measures, structural reforms and privatization of government assets. The bailout loans were mainly used to pay for the maturing bonds, but also to finance the continued yearly budget deficits.


title: Greek government-debt crisis

text: To keep within the monetary union guidelines, the government of Greece for many years simply misreported economic statistics. The areas in which Greece's deficit and debt statistics did not follow common European Union rules spanned about a dozen different areas outlined and explained in two European Commission/Eurostat reports, from January 2010 (including its very detailed and candid annex) and from November 2010.


title: Greek government-debt crisis

text: For example, at the beginning of 2010, it was discovered that Goldman Sachs and other banks had arranged financial transactions involving the use of derivatives to reduce the Greek government's nominal foreign currency debt, in a manner that the banks claim was consistent with EU debt reporting rules, but which others have argued were contrary at the very least to the spirit of the reporting rules of such instruments. Christoforos Sardelis, former head of Greece's Public Debt Management Agency, said that the country did not understand what it was buying. He also said he learned that "other EU countries such as Italy" had made similar deals (while similar cases were reported for other countries, including Belgium, Portugal, and even Germany).


title: Greek government-debt crisis

text: Most notable was a cross currency swap, where billions worth of Greek debts and loans were converted into yen and dollars at a fictitious exchange rate, thus hiding the true extent of Greek loans. Such off market swaps were not originally registered as debt because Eurostat statistics did not include such financial derivatives until March 2008, when Eurostat issued a Guidance note that instructed countries to record as debt such instruments. A German derivatives dealer commented, "The Maastricht rules can be circumvented quite legally through swaps", and "In previous years, Italy used a similar trick to mask its true debt with the help of a different US bank." These conditions enabled Greece and other governments to spend beyond their means, while ostensibly meeting EU deficit targets. However, while in 2008 other EU countries with such off-market swaps declared them to Eurostat and went back to correct their debt data (with reservations and disputes remaining), the Greek government told Eurostat it had no such off market swaps and did not adjust its debt measure as required by the rules. The European Commission/Eurostat November 2010 report explains the situation in detail and inter alia notes (page 17): "In 2008 the Greek authorities wrote to Eurostat that: "The State does not engage in options, forwards, futures or FOREX swaps, nor in off market swaps (swaps with non-zero market value at inception)." In reality, however, according to the same report, at end-2008 Greece had off-market swaps with a market value of 5.4 billion Euro, thus understating the value of general government debt by the same amount (2.3 percent of GDP).The European statistics agency, Eurostat, had at regular intervals from 2004 to 2010, sent 10 delegations to Athens with a view to improving the reliability of Greek statistical figures. In January it issued a report that contained accusations of falsified data and political interference. The Finance Ministry accepted the need to restore trust among investors and correct methodological flaws, "by making the National Statistics Service an independent legal entity and phasing in, during the first quarter of 2010, all the necessary checks and balances".


title: Greek government-debt crisis

text: The new government of George Papandreou revised the 2009 deficit forecast from a previous 6%–8% to 12.7% of GDP. The final value, after revisions concluded in the following year using Eurostat's standardized method, was 15.4% of GDP. The figure for Greek government debt at the end of 2009 increased from its first November estimate at (113% of GDP) to a revised (127% of GDP). This was the highest for any EU country.


title: Greek government-debt crisis

text: The methodology of revisions, has led to a certain controversy. Specifically, questions have been raised about the way the cost of aforementioned previous actions such as cross currency swaps was estimated, and why it was retroactively added to the 2006, 2007, 2008 and 2009 budget deficits, rather than to those of earlier years, more relevant to the transactions. However, Eurostat and ELSTAT have explained in detail in public reports from November 2010 that the proper recording of off-market swaps that was carried out in November 2010 increased the stock of debt for each year for which the swaps were outstanding (including the years 2006–2009) by about 2.3 percent of GDP but at the same time decreased -not increased- the deficit for each of these years by about 0.02 percent of GDP. Regarding the latter, the Eurostat report explains: " at the same time [as the upward correction of the debt stock], there must be a correction throughout the whole period for the deficit of Greece, as the flows of interest under the swap contract are reduced by an amount equal to the part of any settlement flows relating to the amortisation of the loan (this is a financial transaction with no impact on the deficit), whereas interest on the loan are still imputed as expenditure." Further questions involve the way deficits of several legal entities from the non-financial corporations in the General Government sector were estimated and retroactively added to the same years' (2006 to 2009) budget deficits. Nevertheless, both Eurostat and ELSTAT have explained in public reports how the previous misclassification of certain (17 in number) government enterprises and other government entities outside the General Government sector was corrected as they did not meet the criteria for being classified outside the General Government. As the Eurostat report noted, "Eurostat discovered that the ESA 95 rules for classification of state owned units were not being applied." In the context of this controversy, the former head of Greece's statistical agency, Andreas Georgiou, has been accused of inflating Greece's budget deficit for the aforementioned years. He was cleared of charges of inflating Greece's deficit in February 2019. It has been argued by many international as well as Greek observers that "despite overwhelming evidence that Mr. Georgiou correctly applied EU rules in revising Greece’s fiscal deficit and debt figures, and despite strong international support for his case, some Greek courts continued the witch hunt."


title: Greek government-debt crisis

text: The combined corrections lead to an increase of the Greek public debt by about 10%. After the financial audit of the fiscal years 2006–2009 Eurostat announced in November 2010 that the revised figures for 2006–2009 finally were considered to be reliable.


title: Greek government-debt crisis

text: A year later, a worsened recession along with the poor performance of the Greek government in achieving the conditions of the agreed bailout, forced a second bailout. In July 2011, private creditors agreed to a voluntary haircut of 21 percent on their Greek debt, but Eurozone officials considered this write-down to be insufficient. Especially Wolfgang Schäuble, the German finance minister, and Angela Merkel, the German chancellor, "pushed private creditors to accept a 50 percent loss on their Greek bonds", while Jean-Claude Trichet of the European Central Bank had long opposed a haircut for private investors, "fearing that it could undermine the vulnerable European banking system". When private investors agreed to accept bigger losses, the Troika launched the second bailout worth . This included a bank recapitalization package worth €48bn. Private bondholders were required to accept extended maturities, lower interest rates and a 53.5% reduction in the bonds' face value.


title: Greek government-debt crisis

text: On 17 October 2011, Minister of Finance Evangelos Venizelos announced that the government would establish a new fund, aimed at helping those who were hit the hardest from the government's austerity measures. The money for this agency would come from a crackdown on tax evasion.


title: Greek government-debt crisis

text: The government agreed to creditor proposals that Greece raise up to €50 billion through the sale or development of state-owned assets, but receipts were much lower than expected, while the policy was strongly opposed by the left-wing political party, Syriza. In 2014, only €530m was raised. Some key assets were sold to insiders.


title: Greek government-debt crisis

text: The second bailout programme was ratified in February 2012. A total of was to be transferred in regular tranches through December 2014. The recession worsened and the government continued to dither over bailout program implementation. In December 2012 the Troika provided Greece with more debt relief, while the IMF extended an extra €8.2bn of loans to be transferred from January 2015 to March 2016.


title: Greek government-debt crisis

text: The fourth review of the bailout programme revealed unexpected financing gaps. In 2014 the outlook for the Greek economy was optimistic. The government predicted a structural surplus in 2014, opening access to the private lending market to the extent that its entire financing gap for 2014 was covered via private bond sales.


title: Greek government-debt crisis

text: Instead a fourth recession started in Q4-2014. The parliament called snap parliamentary elections in December, leading to a Syriza-led government that rejected the existing bailout terms. Like the previous Greek governments, the Syriza-led government was met with the same response from Troika, "Pacta sunt servanda" (agreements must be kept). The Troika suspended all scheduled remaining aid to Greece, until the Greek government retreated or convinced the Troika to accept a revised programme. This rift caused a liquidity crisis (both for the Greek government and Greek financial system), plummeting stock prices at the Athens Stock Exchange and a renewed loss of access to private financing.


title: Greek government-debt crisis

text: After Greece's January snap election, the Troika granted a further four-month technical extension of its bailout programme; expecting that the payment terms would be renegotiated before the end of April, allowing for the review and the last financial transfer to be completed before the end of June.


title: Greek government-debt crisis

text: Facing sovereign default, the government made new proposals in the first and second half of June. Both were rejected, raising the prospect of recessionary capital controls to avoid a collapse of the banking sector – and Greek exit from the Eurozone.


title: Greek government-debt crisis

text: The government unilaterally broke off negotiations on 26 June. Tsipras announced that a referendum would be held on 5 July to approve or reject the Troika's 25 June proposal. The Greek stock market closed on 27 June.


title: Greek government-debt crisis

text: The government campaigned for rejection of the proposal, while four opposition parties (PASOK, To Potami, KIDISO and New Democracy) objected that the proposed referendum was unconstitutional. They petitioned for the parliament or president to reject the referendum proposal. Meanwhile, the Eurogroup announced that the existing second bailout agreement would technically expire on 30 June, 5 days before the referendum.


title: Greek government-debt crisis

text: The Eurogroup clarified on 27 June that only if an agreement was reached prior to 30 June could the bailout be extended until the referendum on 5 July. The Eurogroup wanted the government to take some responsibility for the subsequent program, presuming that the referendum resulted in approval. The Eurogroup had signaled willingness to uphold their "November 2012 debt relief promise", presuming a final agreement. This promise was that if Greece completed the program, but its debt-to-GDP ratio subsequently was forecast to be over 124% in 2020 or 110% in 2022 for any reason, then the Eurozone would provide debt-relief sufficient to ensure that these two targets would still be met.


title: Greek government-debt crisis

text: On 28 June the referendum was approved by the Greek parliament with no interim bailout agreement. The ECB decided to stop its Emergency Liquidity Assistance to Greek banks. Many Greeks continued to withdraw cash from their accounts fearing that capital controls would soon be invoked.


title: Greek government-debt crisis

text: On 5 July a 61% majority voted to reject the bailout terms. This caused stock indexes worldwide to tumble, fearing Greece's potential exit from the Eurozone ("Grexit"). Following the vote, Greece's finance minister Yanis Varoufakis stepped down on 6 July, because of the Prime Minister's denial to follow the public vote and was replaced by Euclid Tsakalotos.


title: Greek government-debt crisis

text: On 13 July, after 17 hours of negotiations, Eurozone leaders reached a provisional agreement on a third bailout programme, substantially the same as their June proposal. Many financial analysts, including the largest private holder of Greek debt, private equity firm manager, Paul Kazarian, found issue with its findings, citing it as a distortion of net debt position.


title: Greek government-debt crisis

text: On 20 February 2017, the Greek finance ministry reported that the government's debt load had reached €226.36 billion after increasing by €2.65 billion in the previous quarter. By the middle of 2017, the yield on Greek government bonds began approaching pre-2010 levels, signalling a potential return to economic normalcy for the country.


title: Greek government-debt crisis

text: According to the International Monetary Fund (IMF), Greece's GDP was estimated to grow by 2.8% in 2017.


title: Greek government-debt crisis

text: The Medium-term Fiscal Strategy Framework 2018–2021 voted on 19 May 2017 introduced amendments of the provisions of the 2016 thirteenth austerity package.


title: Greek government-debt crisis

text: In June 2017, news reports indicated that the "crushing debt burden" had not been alleviated and that Greece was at the risk of defaulting on some payments. The International Monetary Fund stated that the country should be able to borrow again "in due course". At the time, the Eurozone gave Greece another credit of $9.5-billion, $8.5 billion of loans and brief details of a possible debt relief with the assistance of the IMF. On 13 July, the Greek government sent a letter of intent to the IMF with 21 commitments it promised to meet by June 2018. They included changes in labour laws, a plan to cap public sector work contracts, to transform temporary contracts into permanent agreements and to recalculate pension payments to reduce spending on social security.


title: Greek government-debt crisis

text: On 21 June 2018, Greece's creditors agreed on a 10-year extension of maturities on 96.6 billion euros of loans (i.e. almost a third of Greece's total debt), as well as a 10-year grace period in interest and amortization payments on the same loans. Greece successfully exited (as declared) the bailouts on 20 August 2018.


title: Greek government-debt crisis

text: In March 2021, Greece sold its first 30-year bond since the financial crisis in 2008. The bond issue raised 2.5 billion euros.


title: Greek government-debt crisis

text: On 1 May 2010, the Greek government announced a series of austerity measures. On 3 May, the Eurozone countries and the IMF agreed to a three-year loan, paying 5.5% interest, conditional on the implementation of austerity measures. Credit rating agencies immediately downgraded Greek governmental bonds to an even lower junk status.


title: Greek government-debt crisis

text: The programme was met with anger by the Greek public, leading to protests, riots and social unrest. On 5 May 2010, a national strike was held in opposition. Nevertheless, the austerity package was approved on 29 June 2011, with 155 out of 300 members of parliament voting in favour.


title: Greek government-debt crisis

text: At a 21 July 2011 summit in Brussels, Eurozone leaders agreed to extend Greek (as well as Irish and Portuguese) loan repayment periods from 7 years to a minimum of 15 years and to cut interest rates to 3.5%. They also approved an additional support package, with exact content to be finalized at a later summit. On 27 October 2011, Eurozone leaders and the IMF settled an agreement with banks whereby they accepted a 50% write-off of (part of) Greek debt.


title: Greek government-debt crisis

text: Greece brought down its primary deficit from €25bn (11% of GDP) in 2009 to €5bn (2.4% of GDP) in 2011. However, the Greek recession worsened. Overall 2011 Greek GDP experienced a 7.1% decline. The unemployment rate grew from 7.5% in September 2008 to an unprecedented 19.9% in November 2011.


title: Greek government-debt crisis

text: The third and last Economic Adjustment Programme for Greece was signed on 12 July 2015 by the Greek Government under prime minister Alexis Tsipras and it expired on 20 August 2018.


title: Greek government-debt crisis

text: There were key differences in the effects of the Greek programme compared to those for other Eurozone bailed-out countries. According to the applied programme, Greece had to accomplish by far the largest fiscal adjustment (by more than 9 points of GDP between 2010 and 2012), "a record fiscal consolidation by OECD standards ". Between 2009 and 2014 the change (improvement) in structural primary balance was 16.1 points of GDP for Greece, compared to 8.5 for Portugal, 7.3 for Spain, 7.2 for Ireland, and 5.6 for Cyprus.


title: Greek government-debt crisis

text: The negative effects of such a rapid fiscal adjustment on the Greek GDP, and thus the scale of resulting increase of the Debt to GDP ratio, had been underestimated by the IMF, apparently due to a calculation error. Indeed, the result was a magnification of the debt problem.


title: Greek government-debt crisis

text: Even were the amount of debt to remain the same, Greece's Debt to GDP ratio of 127% in 2009 would still jump to about 170% – considered unsustainable – solely due to the drop in GDP (which fell by more than 25% between 2009 and 2014). The much larger scale of the above effects does not easily support a meaningful comparison with the performance of programmes in other bailed-out countries.


title: Greek government-debt crisis

text: The Hellenic Financial Stability Fund (HFSF) completed a €48.2bn bank recapitalization in June 2013, of which the first €24.4bn were injected into the four biggest Greek banks. Initially, this recapitalization was accounted for as a debt increase that elevated the debt-to-GDP ratio by 24.8 points by the end of 2012. In return for this, the government received shares in those banks, which it could later sell (per March 2012 was expected to generate €16bn of extra "privatization income" for the Greek government, to be realized during 2013–2020).ecb


title: Greek government-debt crisis

text: HFSF offered three out of the four big Greek banks (NBG, Alpha and Piraeus) warrants to buy back all HFSF bank shares in semi-annual exercise periods up to December 2017, at some predefined strike prices. These banks acquired additional private investor capital contribution at minimum 10% of the conducted recapitalization. However Eurobank Ergasias failed to attract private investor participation and thus became almost entirely financed/owned by HFSF. During the first warrant period, the shareholders in Alpha bank bought back the first 2.4% of HFSF shares. Shareholders in Piraeus Bank bought back the first 0.07% of HFSF shares. National Bank (NBG) shareholders bought back the first 0.01% of the HFSF shares, because the market share price was cheaper than the strike price. Shares not sold by the end of December 2017 may be sold to alternative investors.


title: Greek government-debt crisis

text: In May 2014, a second round of bank recapitalization worth €8.3bn was concluded, financed by private investors. All six commercial banks (Alpha, Eurobank, NBG, Piraeus, Attica and Panellinia) participated. HFSF did not tap into their current €11.5bn reserve capital fund. Eurobank in the second round was able to attract private investors. This required HFSF to dilute their ownership from 95.2% to 34.7%.


title: Greek government-debt crisis

text: According to HFSF's third quarter 2014 financial report, the fund expected to recover €27.3bn out of the initial €48.2bn. This amount included "A€0.6bn positive cash balance stemming from its previous selling of warrants (selling of recapitalization shares) and liquidation of assets, €2.8bn estimated to be recovered from liquidation of assets held by its 'bad asset bank', €10.9bn of EFSF bonds still held as capital reserve, and €13bn from its future sale of recapitalization shares in the four systemic banks." The last figure is affected by the highest amount of uncertainty, as it directly reflects the current market price of the remaining shares held in the four systemic banks (66.4% in Alpha, 35.4% in Eurobank, 57.2% in NBG, 66.9% in Piraeus), which for HFSF had a combined market value of €22.6bn by the end of 2013 – declining to €13bn on 10 December 2014.


title: Greek government-debt crisis

text: Once HFSF liquidates its assets, the total amount of recovered capital will be returned to the Greek government to help to reduce its debt. In early December 2014, the Bank of Greece allowed HFSF to repay the first €9.3bn out of its €11.3bn reserve to the Greek government. A few months later, the remaining HFSF reserves were likewise approved for repayment to ECB, resulting in redeeming €11.4bn in notes during the first quarter of 2015.


title: Greek government-debt crisis

text: Initially, European banks had the largest holdings of Greek debt. However, this shifted as the "troika" (ECB, IMF and a European government-sponsored fund) gradually replaced private investors as Greece's main creditor, by setting up the EFSF. As of early 2015, the largest individual contributors to the EFSF fund were Germany, France and Italy with roughly €130bn total of the €323bn debt. The IMF was owed €32bn. As of 2015, various European countries still had a substantial amount of loans extended to Greece. Separately, the European Central Bank acquired around 45 billion euros of Greek bonds through the "securities market programme" (SMP).


title: Greek government-debt crisis

text: Excluding Greek banks, European banks had €45.8bn exposure to Greece in June 2011. However, by early 2015 their holdings had declined to roughly €2.4bn, in part due to the 50% debt write-down.


title: Greek government-debt crisis

text: In November 2015, the European Investment Bank (EIB) lent Greece about 285 million euros. This extended the 2014 deal that EIB would lend 670 million euros. It was thought that the Greek government would invest the money on Greece's energy industries so as to ensure energy security and manage environmentally friendly projects. Werner Hoyer, the president of EIB, expected the investment to boost employment and have a positive impact on Greece's economy and environment.


title: Greek government-debt crisis

text: In hindsight, while the troika shared the aim to avoid a Greek sovereign default, the approach of each member began to diverge, with the IMF on one side advocating for more debt relief while, on the other side, the EU maintained a hardline on debt repayment and strict monitoring.


title: Greek government-debt crisis

text: According to a poll in February 2012 by Public Issue and SKAI Channel, PASOK—which won the national elections of 2009 with 43.92% of the vote—had seen its approval rating decline to 8%, placing it fifth after centre-right New Democracy (31%), left-wing Democratic Left (18%), far-left Communist Party of Greece (KKE) (12.5%) and radical left Syriza (12%). The same poll suggested that Papandreou was the least popular political leader with a 9% approval rating, while 71% of Greeks did not trust him.


title: Greek government-debt crisis

text: In a May 2011 poll, 62% of respondents felt that the IMF memorandum that Greece signed in 2010 was a bad decision that hurt the country, while 80% had no faith in the Minister of Finance, Giorgos Papakonstantinou, to handle the crisis. (Venizelos replaced Papakonstantinou on 17 June). 75% of those polled had a negative image of the IMF, while 65% felt it was hurting Greece's economy. 64% felt that sovereign default was likely. When asked about their fears for the near future, Greeks highlighted unemployment (97%), poverty (93%) and the closure of businesses (92%).


title: Greek government-debt crisis

text: Polls showed that the vast majority of Greeks are not in favour of leaving the Eurozone. Nonetheless, other 2012 polls showed that almost half (48%) of Greeks were in favour of default, in contrast with a minority (38%) who are not.


title: Greek government-debt crisis

text: Greek GDP's worst decline, −6.9%, came in 2011, a year in which seasonally adjusted industrial output ended 28.4% lower than in 2005. During that year, 111,000 Greek companies went bankrupt (27% higher than in 2010). As a result, the seasonally adjusted unemployment rate grew from 7.5% in September 2008 to a then record high of 23.1% in May 2012, while the youth unemployment rate time rose from 22.0% to 54.9%.


title: Greek government-debt crisis

text: From 2009 to 2012, the Greek GDP declined by more than a quarter, causing a " depression dynamic" in the country.


title: Greek government-debt crisis

text: Key statistics are summarized below, with a detailed table at the bottom of the article. According to the CIA World Factbook and Eurostat:


title: Greek government-debt crisis

text: Greece defaulted on a $1.7 billion IMF payment on 29 June 2015 (the payment was made with a 20-day delay). The government had requested a two-year bailout from lenders for roughly $30 billion, its third in six years, but did not receive it.


title: Greek government-debt crisis

text: The IMF reported on 2 July 2015 that the "debt dynamics" of Greece were "unsustainable" due to its already high debt level and "...significant changes in policies since [2014]—not least, lower primary surpluses and a weak reform effort that will weigh on growth and privatization—[which] are leading to substantial new financing needs." The report stated that debt reduction (haircuts, in which creditors sustain losses through debt principal reduction) would be required if the package of reforms under consideration were weakened further.


title: Greek government-debt crisis

text: In response to the crisis, the Greek governments resolved to raise the tax rates dramatically. A study showed that indirect taxes were almost doubled between the beginning of the Crisis and 2017. This crisis-induced system of high taxation has been described as "unfair", "complicated", "unstable" and, as a result, "encouraging tax evasion". The tax rates of Greece have been compared to those of Scandinavian countries, but without the same reciprocity, as Greece lacks the welfare state infrastructures.


title: Greek government-debt crisis

text: As of 2016, five indirect taxes had been added to goods and services. At 23%, the value added tax is one of the Eurozone's highest, exceeding other EU countries on small and medium-sized enterprises. One researcher found that the poorest households faced tax increases of 337%.


title: Greek government-debt crisis

text: The ensuing tax policies are accused for having the opposite effects than intended, namely reducing instead of increasing the revenues, as high taxation discourages transactions and encourages tax evasion, thus perpetuating the depression. Some firms relocated abroad to avoid the country's higher tax rates.


title: Greek government-debt crisis

text: Greece not only has some of the highest taxes in Europe, it also has major problems in terms of tax collection. The VAT deficit due to tax evasion was estimated at 34% in early 2017. Tax debts in Greece are now equal to 90% of annual tax revenue, which is the worst number in all industrialized nations. Much of this is due to the fact that Greece has a vast underground economy, which was estimated to be about the size of a quarter of the country's GDP before the crisis. The International Monetary Fund therefore argued in 2015 that Greece's debt crisis could be almost completely resolved if the country's government found a way to solve the tax evasion problem.


title: Greek government-debt crisis

text: A mid-2017 report indicated Greeks have been "taxed to the hilt" and many believed that the risk of penalties for tax evasion were less serious than the risk of bankruptcy. A more recent study showed that many Greeks consider tax evasion a legitimate means of defense against the government's policies of austerity and over-taxation. As an example, many Greek couples in 2017 resolved to "virtual" divorces hoping to pay lower income and property taxes.


title: Greek government-debt crisis

text: By 2010, tax receipts consistently were below the expected level. In 2010, estimated tax evasion losses for the Greek government amounted to over . 2013 figures showed that the government collected less than half of the revenues due in 2012, with the remaining tax to be paid according to a delayed payment schedule.


title: Greek government-debt crisis

text: Data for 2012 placed the Greek underground or "black" economy at 24.3% of GDP, compared with 28.6% for Estonia, 26.5% for Latvia, 21.6% for Italy, 17.1% for Belgium, 14.7% for Sweden, 13.7% for Finland, and 13.5% for Germany.


title: Greek government-debt crisis

text: A January 2017 report by the DiaNEOsis think-tank indicated that unpaid taxes in Greece at the time totaled approximately 95 billion euros, up from 76 billion euros in 2015, much of it was expected to be uncollectable. Another early 2017 study estimated that the loss to the government as a result of tax evasion was between 6% and 9% of the country's GDP, or roughly between 11 billion and 16 billion euros per annum.


title: Greek government-debt crisis

text: One method of evasion is the so-called black market, grey economy or shadow economy: work is done for cash payment which is not declared as income; as well, VAT is not collected and remitted. The shortfall in the collection of VAT (sales tax) is also significant. In 2014, the government collected 28% less than was owed to it; this shortfall is about double the average for the EU. The uncollected amount that year was about 4.9 billion euros. The DiaNEOsis study estimated that 3.5% of GDP is lost due to VAT fraud, while losses due to smuggling of alcohol, tobacco and petrol amounted to approximately another 0.5% of the country's GDP.


title: Greek government-debt crisis

text: The social effects of the austerity measures on the Greek population were severe. In February 2012, it was reported that 20,000 Greeks had been made homeless during the preceding year, and that 20 per cent of shops in the historic city centre of Athens were empty.


title: Greek government-debt crisis

text: By 2015, the OECD reported that nearly twenty percent of Greeks lacked funds to meet daily food expenses. Consequently, because of financial shock, unemployment directly affects debt management, isolation, and unhealthy coping mechanisms such as depression, suicide, and addiction. In particular, as for the number who reported having attempted suicide, there was an increased suicidality amid economic crisis in Greece, an increase of 36% from 2009 to 2011. As the economy contracted and the welfare state declined, traditionally strong Greek families came under increasing strain, attempting to cope with increasing unemployment and homeless relatives. Many unemployed Greeks cycled between friends and family members until they ran out of options and ended up in homeless shelters. These homeless had extensive work histories and were largely free of mental health and substance abuse concerns.


title: Greek government-debt crisis

text: The Greek government was unable to commit the necessary resources to homelessness, due in part to austerity measures. A program was launched to provide a subsidy to assist homeless to return to their homes, but many enrollees never received grants. Various attempts were made by local governments and non-governmental agencies to alleviate the problem. The non-profit street newspaper "Schedia" (, "Raft"), that is sold by street vendors in Athens attracted many homeless to sell the paper. Athens opened its own shelters, the first of which was called the "Hotel Ionis". In 2015, the Venetis bakery chain in Athens gave away ten thousand loaves of bread a day, one-third of its production. In some of the poorest neighborhoods, according to the chain's general manager, "In the third round of austerity measures, which is beginning now, it is certain that in Greece there will be no consumers – there will be only beggars."


title: Greek government-debt crisis

text: In a study by Eurostat, it was found that 1 in 3 Greek citizens lived under poverty conditions in 2016.


title: Greek government-debt crisis

text: The economic and social crisis had profound political effects. In 2011 it gave rise to the anti-austerity Movement of the Indignant in Syntagma Square. The two-party system which dominated Greek politics from 1977 to 2009 crumbled in the double elections of 6 May and 17 June 2012. The main features of this transformation were:


title: Greek government-debt crisis

text: a) The crisis of the two main parties, the center-right New Democracy (ND) and center-left PASOK. ND saw its share of the vote drop from an historical average of >40% to a record low of 19–33% in 2009–19. PASOK collapsed from 44% in 2009 to 13% in June 2012 and stabilized around 8% in the 2019 elections. Meanwhile, Syriza emerged as the main rival of ND, with a share of the vote that rose from 4% to 27% between 2009 and June 2012. This peaked in the elections of 25 January 2015 when Syriza received 36% of the vote and fell to 31.5% in the 7 July 2019 elections.


title: Greek government-debt crisis

text: b) The sharp rise of the Neo-Nazi Golden Dawn, whose share of the vote increased from 0.29% in 2009 to 7% in May and June 2012. In 2012–19, Golden Dawn was the third largest party in the Greek Parliament.


title: Greek government-debt crisis

text: c) A general fragmentation of the popular vote. The average number of parties represented in the Greek Parliament in 1977–2012 was between 4 and 5. In 2012–19 this increased to 7 or 8 parties.


title: Greek government-debt crisis

text: d) From 1974 to 2011 Greece was ruled by single-party governments, except for a brief period in 1989–90. In 2011–19, the country was ruled by two- or three-party coalitions.


title: Greek government-debt crisis

text: The victory of ND in the 7 July 2019 elections with 40% of the vote and the formation of the first one-party government in Greece since 2011 could be the beginning of a new functioning two-party system. However, the significantly weaker performance of Syriza and PASOK's endurance as a competing centre-left party could signal continued party system fluidity.


title: Greek government-debt crisis

text: In 2016 and 2017, the government was encouraging the use of credit card or debit cards to pay for goods and services in order to reduce cash only payments. By January 2017, taxpayers were only granted tax-allowances or deductions when payments were made electronically, with a "paper trail" of the transactions. This was expected to reduce the opportunity by vendors to avoid the payment of VAT (sales) tax and income tax.


title: Greek government-debt crisis

text: By 28 July 2017, numerous businesses were required by law to install a point of sale device to enable them to accept payment by credit or debit card. Failure to comply with the electronic payment facility can lead to fines of up to 1,500 euros. The requirement applied to around 400,000 firms or individuals in 85 professions. The greater use of cards was one of the factors that had already achieved significant increases in VAT collection in 2016.


title: Greek government-debt crisis

text: Krugman suggested that the Greek economy could recover from the recession by exiting the Eurozone ("Grexit") and returning to its national currency, the drachma. That would restore Greece's control over its monetary policy, allowing it to navigate the trade-offs between inflation and growth on a national basis, rather than the entire Eurozone. Iceland made a dramatic recovery following the default of its commercial banking system in 2008, in part due to the devaluing of the krona (ISK). In 2013, it enjoyed an economic growth rate of some 3.3 percent. Canada was able to improve its budget position in the 1990s by devaluing its currency.


title: Greek government-debt crisis

text: Greece could accept additional bailout funds and debt relief (i.e. bondholder haircuts or principal reductions) in exchange for greater austerity. However, austerity has damaged the economy, deflating wages, destroying jobs and reducing tax receipts, thus making it even harder to pay its debts. If further austerity were accompanied by enough reduction in the debt balance owed, the cost might be justifiable.


title: Greek government-debt crisis

text: Economist Thomas Piketty said in July 2015: "We need a conference on all of Europe’s debts, just like after World War II. A restructuring of all debt, not just in Greece but in several European countries, is inevitable." This reflected the difficulties that Spain, Portugal, Italy and Ireland had faced (along with Greece) before ECB-head Mario Draghi signaled a pivot to looser monetary policy. Piketty noted that Germany received significant debt relief after World War II. He warned that: "If we start kicking states out, then...Financial markets will immediately turn on the next country."


title: Greek government-debt crisis

text: Germany has played a major role in discussion concerning Greece's debt crisis. A key issue has been the benefits it enjoyed through the crisis, including falling borrowing rates (as Germany, along with other strong Western economies, was seen as a safe haven by investors during the crisis), investment influx, and exports boost thanks to Euro's depreciation (with profits that may have reached 100bn Euros, according to some estimates), as well as other profits made through loans. Critics have also accused the German government of hypocrisy; of pursuing its own national interests via an unwillingness to adjust fiscal policy in a way that would help resolve the eurozone crisis; of using the ECB to serve their country's national interests; and have criticised the nature of the austerity and debt-relief programme Greece has followed as part of the conditions attached to its bailouts.


title: Greek government-debt crisis

text: Hypocrisy has been alleged on multiple bases. "Germany is coming across like a know-it-all in the debate over aid for Greece", commented "Der Spiegel", while its own government did not achieve a budget surplus during the era of 1970 to 2011, although a budget surplus indeed was achieved by Germany in all three subsequent years (2012–2014) – with a spokesman for the governing CDU party commenting that "Germany is leading by example in the eurozone – only spending money in its coffers". A Bloomberg editorial, which also concluded that "Europe's taxpayers have provided as much financial support to Germany as they have to Greece", described the German role and posture in the Greek crisis thus:


title: Greek government-debt crisis

text: German economic historian Albrecht Ritschl describes his country as "king when it comes to debt. Calculated based on the amount of losses compared to economic performance, Germany was the biggest debt transgressor of the 20th century." Despite calling for the Greeks to adhere to fiscal responsibility, and although Germany's tax revenues are at a record high, with the interest it has to pay on new debt at close to zero, Germany still missed its own cost-cutting targets in 2011 and is also falling behind on its goals for 2012.


title: Greek government-debt crisis

text: Allegations of hypocrisy could be made towards both sides: Germany complains of Greek corruption, yet the arms sales meant that the trade with Greece became synonymous with high-level bribery and corruption; former defence minister Akis Tsochadzopoulos was jailed in April 2012 ahead of his trial on charges of accepting an €8m bribe from Germany company Ferrostaal.


title: Greek government-debt crisis

text: "The counterpart to Germany living within its means is that others are living beyond their means", according to Philip Whyte, senior research fellow at the Centre for European Reform. "So if Germany is worried about the fact that other countries are sinking further into debt, it should be worried about the size of its trade surpluses, but it isn't."


title: Greek government-debt crisis

text: OECD projections of relative export prices—a measure of competitiveness—showed Germany beating all Eurozone members except for crisis-hit Spain and Ireland for 2012, with the lead only widening in subsequent years. A study by the Carnegie Endowment for International Peace in 2010 noted that "Germany, now poised to derive the greatest gains from the euro's crisis-triggered decline, should boost its domestic demand" to help the periphery recover. In March 2012, Bernhard Speyer of Deutsche Bank reiterated: "If the eurozone is to adjust, southern countries must be able to run trade surpluses, and that means somebody else must run deficits. One way to do that is to allow higher inflation in Germany but I don't see any willingness in the German government to tolerate that, or to accept a current account deficit."


title: Greek government-debt crisis

text: According to a research paper by Credit Suisse, "Solving the periphery economic imbalances does not only rest on the periphery countries' shoulders even if these countries have been asked to bear most of the burden. Part of the effort to re-balance Europe also has to been borne [sic] by Germany via its current account." At the end of May 2012, the European Commission warned that an "orderly unwinding of intra-euro area macroeconomic imbalances is crucial for sustainable growth and stability in the euro area," and suggested Germany should "contribute to rebalancing by removing unnecessary regulatory and other constraints on domestic demand". In July 2012, the IMF added its call for higher wages and prices in Germany, and for reform of parts of the country's economy to encourage more spending by its consumers.


title: Greek government-debt crisis

text: Paul Krugman estimates that Spain and other peripherals need to reduce their price levels relative to Germany by around 20 percent to become competitive again:


title: Greek government-debt crisis

text: The US has also repeatedly asked Germany to loosen fiscal policy at G7 meetings, but the Germans have repeatedly refused.


title: Greek government-debt crisis

text: Even with such policies, Greece and other countries would face years of hard times, but at least there would be some hope of recovery. EU employment chief Laszlo Andor called for a radical change in EU crisis strategy and criticised what he described as the German practice of "wage dumping" within the eurozone to gain larger export surpluses.


title: Greek government-debt crisis

text: With regard to structural reforms required from countries at the periphery, Simon Evenett stated in 2013: "Many promoters of structural reform are honest enough to acknowledge that it generates short-term pain. (...) If you've been in a job where it is hard to be fired, labour market reform introduces insecurity, and you might be tempted to save more now there's a greater prospect of unemployment. Economy-wide labour reform might induce consumer spending cuts, adding another drag on a weakened economy." Paul Krugman opposed structural reforms in accordance with his view of the task of improving the macroeconomic situation being "the responsibility of Germany and the ECB."


title: Greek government-debt crisis

text: Claims that Germany had, by mid-2012, given Greece the equivalent of 29 times the aid given to West Germany under the Marshall Plan after World War II have been contested, with opponents claiming that aid was just a small part of Marshall Plan assistance to Germany and conflating the writing off of a majority of Germany's debt with the Marshall Plan.


title: Greek government-debt crisis

text: The version of adjustment offered by Germany and its allies is that austerity will lead to an internal devaluation, i.e. deflation, which would enable Greece gradually to regain competitiveness. This view too has been contested. A February 2013 research note by the Economics Research team at Goldman Sachs claims that the years of recession being endured by Greece "exacerbate the fiscal difficulties as the denominator of the debt-to-GDP ratio diminishes".


title: Greek government-debt crisis

text: Strictly in terms of reducing wages relative to Germany, Greece had been making progress: private-sector wages fell 5.4% in the third quarter of 2011 from a year earlier and 12% since their peak in the first quarter of 2010. The second economic adjustment programme for Greece called for a further labour cost reduction in the private sector of 15% during 2012–2014.


title: Greek government-debt crisis

text: In contrast Germany's unemployment continued its downward trend to record lows in March 2012, and yields on its government bonds fell to repeat record lows in the first half of 2012 (though real interest rates are actually negative).


title: Greek government-debt crisis

text: All of this has resulted in increased anti-German sentiment within peripheral countries like Greece and Spain.


title: Greek government-debt crisis

text: When Horst Reichenbach arrived in Athens towards the end of 2011 to head a new European Union task force, the Greek media instantly dubbed him "Third Reichenbach". Almost four million German tourists—more than any other EU country—visit Greece annually, but they comprised most of the 50,000 cancelled bookings in the ten days after 6 May 2012 Greek elections, a figure "The Observer" called "extraordinary". The Association of Greek Tourism Enterprises estimates that German visits for 2012 will decrease by about 25%. Such is the ill-feeling, historic claims on Germany from WWII have been reopened, including "a huge, never-repaid loan the nation was forced to make under Nazi occupation from 1941 to 1945."


title: Greek government-debt crisis

text: Perhaps to curb some of the popular reactions, Germany and the eurozone members approve the 2019 budget of Greece, which called for no further pension cuts, in spite of the fact that these were agreed under the third memorandum.


title: Greek government-debt crisis

text: Greece's GDP dropped by 25%, connected with the bailout programmes. This had a critical effect: the debt-to-GDP ratio, the key factor defining the severity of the crisis, would jump from its 2009 level of 127% to about 170%, solely due to the GDP drop (for the same debt). Such a level is considered most probably unsustainable. In a 2013 report, the IMF admitted that it had underestimated the effects of such extensive tax hikes and budget cuts on the country's GDP and issued an informal apology.


title: Greek government-debt crisis

text: The Greek programmes imposed a very rapid improvement in structural primary balance, at least two times faster than in Ireland, Portugal and Cyprus. The results of these policies, which worsened the debt crisis, are often cited, while Greece's president, Prokopis Pavlopoulos, has stressed the creditors' share in responsibility for the depth of the crisis. Greek Prime Minister Alexis Tsipras spoke to Bloomberg about errors in the design of the first two programmes which he alleged that, by imposing too much austerity, lead to a loss of 25% of the Greek GDP.


title: Greek government-debt crisis

text: A large number of negative articles about the Greek economy and society have been published in international media before and during the crisis, leading to accusations about negative stereotyping and possible effects on the evolution of the crisis itself.


title: Greek government-debt crisis

text: Elements contradicting several negative reports include the facts that Greeks even before the crisis worked the hardest in the EU, took fewer vacation days and on average retired at about the same age as the Germans, Greece's private and households debt-to-GDP ratio was one of the lowest in the EU, while its government expenditure as a percentage of GDP was at the EU average. Similarly, negative reports about the Greek economy rarely mentioned the previous decades of Greece's high economic growth rates combined with low government debt.


title: Go First

text: Go First, founded as GoAir, is an Indian ultra-low-cost airline based in Mumbai, Maharashtra. It is owned by the Indian business conglomerate Wadia Group. In October 2017, it was the fifth largest airline in India with an 8.4% passenger market share. It commenced operations on 4 November 2005 and operates a fleet of Airbus A320 aircraft in an all economy configuration.


title: Go First

text: In March 2020, the airline operated over 330 daily flights to 36 destinations, including 27 domestic and nine international destinations, from its bases at Mumbai, Delhi, Bangalore, Kolkata, Hyderabad and Chandigarh, and Kannur. The airline is planning to launch an IPO to raise Rs 36 billion from the primary market and has filed a DRHP for the same with Indian stock market regulator SEBI.


title: Go First

text: Go First was founded as GoAir on 4 November 2005 by Jeh Wadia, son of Indian industrialist Nusli Wadia. The airline is a wholly owned subsidiary of the Wadia Group. GoAir commenced its operations using an Airbus A320 aircraft and operated its inaugural flight from Mumbai to Ahmedabad on 4 November 2005. The airline initially operated with a single aircraft to four destinations including Goa and Coimbatore with plans to induct 36 aircraft by 2008. In March 2008, the airline announced revised plans to operate 11 aircraft and service new destinations in North East and South India by the end of the year. Increasing fuel prices forced Go First to cut down the existing number of flights in June 2008.


title: Go First

text: In January 2009, British Airways was interested in buying a stake in the airline. In November 2009, GoAir entered into talks with Indian airline SpiceJet over a possible merger which ended in a no deal. In April 2012, GoAir became the fifth largest airline in India in terms of market share following the demise of Kingfisher Airlines. In 2013, the airline appointed investment bank JP Morgan to scout for potential investors. The airline's growth has been slow compared to other airlines established at the same time such as IndiGo and SpiceJet, which have larger market share, fleet size and destinations served as of 2016.


title: Go First

text: According to the airline, it is a planned strategy due to the tough aviation environment in India and to focus on maintaining profitability rather than on capturing market share and increasing the destinations and fleet size. As of February 2016, it was the fifth largest carrier in the country with an 8% market share. The airline is planning for an initial public offering (IPO) in 2020. The airline took delivery of its 20th aircraft in June 2016, making it eligible to operate international flights.


title: Go First

text: GoAir became the sixth Indian domestic carrier to fly international when it launched its inaugural flight to Phuket from New Delhi on 11 October 2018.


title: Go First

text: On 17 March 2020, due to the impact of the COVID-19 pandemic, GoAir suspended its international flights. On 13 May 2021, GoAir was rebranded as Go First.


title: Go First

text: The airline is headquartered in the Wadia International Centre in Worli, Mumbai, India. Jehangir Wadia served as the managing director of the airline since its inception until his resignation in 2021. Kaushik Khona is the CEO of Go First.


title: Go First

text: In March 2020, Go First operated to a network of 39 destinations – 29 domestic and 10 international to Thailand (Bangkok and Phuket), Muscat, Abu Dhabi and Dubai, Kuwait City, Singapore , Colombo and Malé. As of now, Go First operates international flights from Mumbai, Delhi, Bengaluru, Kannur and Kolkata. The airline has a total of 325 daily flights and more than 2200 weekly flights. The airline maintains bases at Delhi, Kolkata, Bengaluru, Kannur and Mumbai airports.


title: Go First

text: The airline commenced its first international operations on 11 October 2018 from Delhi to Phuket, then from Mumbai to Phuket on 12 October, from Mumbai and Delhi to Malé on 14 and 17 October respectively.


title: Go First

text: In June 2011, Go First placed an order for 72 Airbus A320neo aircraft worth . Deliveries began from 2016, with an induction rate of 12–15 aircraft per year. In December 2015, Airbus intimated that the deliveries will be delayed by three months due to technical issues and the aircraft will be delivered by the second quarter of financial year 2015–16. Go First received its first A320neo aircraft on 1 June 2016.


title: Go First

text: In July 2016, Go First signed a memorandum of understanding with Airbus for 72 Airbus A320neo aircraft valued at , potentially taking the total number of orders to 144. This deal was announced at Farnborough Airshow.


title: Go First

text: Being a budget airline, Go First does not provide complimentary meals on its flights but offers options for buy on board in-flight meals. The airline publishes an in-flight magazine named "Go-getter". Go First offers a premium service known as "Go Business" at a higher fare which provides extra services including seats with greater legroom, free meals, increased baggage allowance and priority boarding. In 2011, the airline launched its frequent flyer programme called "Go Club", which provided benefits such as lounge access and free upgrade to "Go Business". New membership was discontinued in February 2014.


title: Go First

text: Go First was rated as the "Best Domestic Airline For Excellence in Quality and Efficient Service" by Pacific Area Travel Writers Association in 2008. The airline was named the "Best Performing Airline" in Asia and Africa of all Airbus A320 operators by Airbus in 2011 based on fleet utilization and other performance metrics.


title: Compost

text: Compost is a mixture of ingredients used as plant fertilizer and to improve soil's physical, chemical and biological properties. It is commonly prepared by decomposing plant, food waste, recycling organic materials and manure. The resulting mixture is rich in plant nutrients and beneficial organisms, such as bacteria, protozoa, nematodes and fungi. Compost improves soil fertility in gardens, landscaping, horticulture, urban agriculture, and organic farming, reducing dependency on commercial chemical fertilizers. The benefits of compost include providing nutrients to crops as fertilizer, acting as a soil conditioner, increasing the humus or humic acid contents of the soil, and introducing beneficial microbes that help to suppress pathogens in the soil and reduce soil-borne diseases.


title: Compost

text: At the simplest level, composting requires gathering a mix of 'greens' (green waste) and 'browns' (brown waste). Greens are materials rich in nitrogen such as leaves, grass, and food scraps. Browns are woody materials rich in carbon, such as stalks, paper, and wood chips. The materials break down into humus in a process taking months. Composting can be a multi-step, closely monitored process with measured inputs of water, air, and carbon- and nitrogen-rich materials. The decomposition process is aided by shredding the plant matter, adding water, and ensuring proper aeration by regularly turning the mixture in a process using open piles or "windrows." Fungi, earthworms, and other detritivores further break up the organic material. Aerobic bacteria and fungi manage the chemical process by converting the inputs into heat, carbon dioxide, and ammonium.


title: Compost

text: Composting is an important part of waste management, since food and other compostable materials make up about 20% of waste in landfills, and these materials take longer to biodegrade in the landfill. Composting offers an environmentally superior alternative to using organic material for landfill because composting reduces anaerobic methane emissions, and provides economic and environmental co-benefits. For example, compost can also be used for land and stream reclamation, wetland construction, and landfill cover.


title: Compost

text: Composting is an aerobic method of decomposing organic solid wastes. It can therefore be used to recycle organic material. The process involves decomposing organic material into a humus-like material, known as compost, which is a good fertilizer for plants.


title: Compost

text: Certain ratios of these materials will allow microorganisms to work at a rate that will heat up the compost pile. Active management of the pile (e.g., turning over the compost heap with a pitchfork) is needed to maintain sufficient oxygen and the right moisture level. The air/water balance is critical to maintaining high temperatures until the materials are broken down.


title: Compost

text: Composting is most efficient with a carbon-to-nitrogen ratio of about 25:1. Hot composting focuses on retaining heat to increase the decomposition rate thus producing compost more quickly. Rapid composting is favored by having a carbon-to-nitrogen ratio of ~30 carbon units or less. Above 30, the substrate is nitrogen starved. Below 15, it is likely to outgas a portion of nitrogen as ammonia.


title: Compost

text: Nearly all dead plant and animal materials have both carbon and nitrogen in different amounts. Fresh grass clippings have an average ratio of about 15:1 and dry autumn leaves about 50:1 depending upon species. Composting is an ongoing and dynamic process, adding new sources of carbon and nitrogen consistently as well as active management is important.


title: Compost

text: Organisms can break down organic matter in compost if provided with the correct mixture of water, oxygen, carbon, and nitrogen. They fall into two broad categories: chemical decomposers which perform chemical processes on the organic waste, and physical decomposers which process the waste into smaller pieces through methods such as grinding, tearing, chewing, and digesting.


title: Compost

text: The time required to compost material relates to the volume of material, the particle size of the inputs (e.g. wood chips break down faster than branches), and the amount of mixing and aeration. Generally, larger piles will reach higher temperatures and remain in a thermophilic stage for days or weeks. This is hot composting and is the usual method for large-scale municipal facilities and agricultural operations.


title: Compost

text: The 'Berkeley method' produces finished compost in eighteen days. It requires assembly of at least of material at the outset and needs turning every two days after an initial four-day phase. Such short processes involve some changes to traditional methods, including smaller, more homogenized particle sizes in the input materials, controlling carbon-to-nitrogen ratio (C:N) at 30:1 or less, and careful monitoring of the moisture level.


title: Compost

text: Cold composting is a slower process that can take up to a year to complete. It results from smaller piles, including many residential compost piles that receive small amounts of kitchen and garden waste over extended periods. Piles smaller than tend not to reach and maintain high temperatures. Turning is not necessary with cold composting, although there is a risk that parts of the pile may go anaerobic as they become compacted or water-logged.


title: Compost

text: Dealing with stabilized compost – i.e. composted material in which microorganisms have finished digesting the organic matter and the temperature has reached between – poses very little risk, as these temperatures kill pathogens and even make oocysts unviable. The temperature at which a pathogen dies depends on the pathogen, how long the temperature is maintained (seconds to weeks), and pH.


title: Compost

text: Compost products like compost tea and compost extracts have been found to have an inhibitory effect on "Fusarium oxysporum", "Rhizoctonia" sp., and "Pythium debaryanum," plant pathogens that can cause crop diseases. Aerated compost teas are more effective than compost extracts. The microbiota and enzymes present in compost extracts also have a suppressive effect on fungal plant pathogens. Compost is a good source of biocontrol agents like "B. subtilis", "B. licheniformis," and P. "chrysogenum" that fight plant pathogens. Sterilizing the compost, compost tea, or compost extracts reduces the effect of pathogen suppression.


title: Compost

text: When turning compost that has not gone through phases where temperatures above are reached, a mouth mask and gloves must be worn to protect from diseases that can be contracted from handling compost, including:


title: Compost

text: Composting at home reduces the amount of green waste being hauled to dumps or composting facilities. The reduced volume of materials being picked up by trucks results in less trips which in turn lowers the overall emissions from the waste management fleet.


title: Compost

text: Potential sources of compostable materials, or feedstocks, include residential, agricultural, and commercial waste streams. Residential food or yard waste can be composted at home, or collected for inclusion in a large-scale municipal composting facility. In some regions, it could also be included in a local or neighborhood composting project.


title: Compost

text: Green waste is generally considered a source of nitrogen and includes pre and post-consumer food waste, grass clippings, garden trimmings, and fresh leaves. Animal carcasses, roadkill, and butcher residue can also be composted and these are considered nitrogen sources.


title: Compost

text: Brown waste is a carbon source. Typical examples are dried vegetation and woody material such as fallen leaves, straw, woodchips, limbs, logs, pine needles, sawdust, and wood ash but not charcoal ash. Products derived from wood such as paper and plain cardboard are also considered carbon sources.


title: Compost

text: On many farms, the basic composting ingredients are animal manure generated on the farm as a nitrogen source, and bedding as the carbon source. Straw and sawdust are common bedding materials. Non-traditional bedding materials are also used, including newspaper and chopped cardboard. The amount of manure composted on a livestock farm is often determined by cleaning schedules, land availability, and weather conditions. Each type of manure has its own physical, chemical, and biological characteristics. Cattle and horse manures, when mixed with bedding, possess good qualities for composting. Swine manure, which is very wet and usually not mixed with bedding material, must be mixed with straw or similar raw materials. Poultry manure must be blended with high-carbon, low-nitrogen materials.


title: Compost

text: Human excreta, sometimes called "humanure" in the composting context, can be added as an input to the composting process since it is a nitrogen-rich organic material. It can be either composted directly in composting toilets, or indirectly in the form of sewage sludge after it has undergone treatment in a sewage treatment plant. Both processes require capable design as there are potential health risks that need to be managed. In the case of home composting, a wide range of microorganisms including bacteria, viruses and parasitic worms can be present in feces, and improper processing can pose significant health risks. In the case of large sewage treatment facilities that collect wastewater from a range of residential, commercial and industrial sources, there are additional considerations. The composted sewage sludge, referred to as biosolids, can be contaminated with a variety of metals and pharmaceutical compounds. Insufficient processing of biosolids can also lead to problems when the material is applied to land.


title: Compost

text: Urine can be put on compost piles or directly used as fertilizer. Adding urine to compost can increase temperatures and therefore increase its ability to destroy pathogens and unwanted seeds. Unlike feces, urine does not attract disease-spreading flies (such as houseflies or blowflies), and it does not contain the most hardy of pathogens, such as parasitic worm eggs.


title: Compost

text: Composting, or formally "natural organic reduction", is an emerging approach to the environmentally-friendly disposal of human corpses. Mixed with wood chips and aerated, a human corpse turns into compost in a month. The idea is growing in popularity, particularly in the United States where a number of states have either legalized the process or are in the process of doing so.


title: Compost

text: On September 9th, 2022, California governor Gavin Newsom signed a bill that would allow human composting in California. Burial, cremation and alkaline hydrolysis were the only choices of death care, but with the new bill signed into action, human composting, or natural organic reduction, will be an additional option for “individuals who want a different method to honor their remains after death.” The bill is set to take effect in 2027.


title: Compost

text: The practice of making raised garden beds or mounds filled with rotting wood is also called in German. It is in effect creating a nurse log that is covered with soil.


title: Compost

text: Benefits of garden beds include water retention and warming of soil. Buried wood acts like a sponge as it decomposes, able to capture water and store it for later use by crops planted on top of the bed.


title: Compost

text: On open ground for growing wheat, corn, soybeans, and similar crops, compost can be broadcast across the top of the soil using spreader trucks or spreaders pulled behind a tractor. It is expected that the spread layer is very thin (approximately ) and worked into the soil prior to planting. Application rates of or more are not unusual when trying to rebuild poor soils or control erosion. Due to the extremely high cost of compost per unit of nutrients in the United States, on-farm use is relatively rare since rates over 4 tons/acre may not be affordable. This results from an over-emphasis on "recycling organic matter" than on "sustainable nutrients." In countries such as Germany, where compost distribution and spreading are partially subsidized in the original waste fees, compost is used more frequently on open ground on the premise of nutrient "sustainability".


title: Compost

text: In plasticulture, strawberries, tomatoes, peppers, melons, and other fruits and vegetables are grown under plastic to control temperature, retain moisture and control weeds. Compost may be banded (applied in strips along rows) and worked into the soil prior to bedding and planting, be applied at the same time the beds are constructed and plastic laid down, or used as a top dressing.


title: Compost

text: Many crops are not seeded directly in the field but are started in seed trays in a greenhouse. When the seedlings reach a certain stage of growth, they are transplanted in the field. Compost may be part of the mix used to grow the seedlings, but is not normally used as the only planting substrate. The particular crop and the seeds' sensitivity to nutrients, salts, etc. dictates the ratio of the blend, and maturity is important to insure that oxygen deprivation will not occur or that no lingering phyto-toxins remain.


title: Compost

text: Compost can be added to soil, coir, or peat, as a tilth improver, supplying humus and nutrients. It provides a rich growing medium as absorbent material. This material contains moisture and soluble minerals, which provide support and nutrients. Although it is rarely used alone, plants can flourish from mixed soil, sand, grit, bark chips, vermiculite, perlite, or clay granules to produce loam. Compost can be tilled directly into the soil or growing medium to boost the level of organic matter and the overall fertility of the soil. Compost that is ready to be used as an additive is dark brown or even black with an earthy smell.


title: Compost

text: Generally, direct seeding into a compost is not recommended due to the speed with which it may dry, the possible presence of phytotoxins in immature compost that may inhibit germination, and the possible tie up of nitrogen by incompletely decomposed lignin. It is very common to see blends of 20–30% compost used for transplanting seedlings.


title: Compost

text: Compost tea is made up of extracts of fermented water leached from composted materials. Composts can be either aerated or non-aerated depending on its fermentation process. Compost teas are generally produced from adding compost to water in a ratio of 1:4–1:10, occasionally stirring to release microbes.


title: Compost

text: There is debate about the benefits of aerating the mixture. Non-aerated compost tea is cheaper and less labor intensive, but there are conflicting studies regarding the risks of phytotoxicity and human pathogen regrowth. Aerated compost tea brews faster and generates more microbes, but has potential for human pathogen regrowth.


title: Compost

text: Field studies have shown the benefits of adding compost teas to crops due to organic matter input, increased nutrient availability, and increased microbial activity. They have also been shown to have a suppressive effect on plant pathogens and soil-borne diseases. The efficacy is influenced by a number of factors, such as the preparation process, the type of source the conditions of the brewing process, and the environment of the crops. Adding nutrients to compost tea can be beneficial for disease suppression, although it can trigger the regrowth of human pathogens like "E. coli" and "Salmonella."


title: Compost

text: Compost extracts are unfermented or non-brewed extracts of leached compost contents dissolved in any solvent.


title: Compost

text: Compost is sold as bagged potting mixes in garden centers and other outlets. This may include composted materials such as manure and peat but is also likely to contain loam, fertilizers, sand, grit, etc. Varieties include multi-purpose composts designed for most aspects of planting, John Innes formulations, grow bags, designed to have crops such as tomatoes directly planted into them. There are also a range of specialist composts available, e.g. for vegetables, orchids, houseplants, hanging baskets, roses, ericaceous plants, seedlings, potting on, etc.


title: Compost

text: The temperatures generated by compost can be used to heat greenhouses, such as by being placed around the outside edges.


title: Compost

text: There are process and product guidelines in Europe that date to the early 1980s (Germany, the Netherlands, Switzerland) and only more recently in the UK and the US. In both these countries, private trade associations within the industry have established loose standards, some say as a stop-gap measure to discourage independent government agencies from establishing tougher consumer-friendly standards. Compost is regulated in Canada and Australia as well.


title: Compost

text: EPA Class A and B guidelines in the United States were developed solely to manage the processing and beneficial reuse of sludge, also now called biosolids, following the US EPA ban of ocean dumping. About 26 American states now require composts to be processed according to these federal protocols for pathogen and vector control, even though the application to non-sludge materials has not been scientifically tested. An example is that green waste composts are used at much higher rates than sludge composts were ever anticipated to be applied at. U.K guidelines also exist regarding compost quality, as well as Canadian, Australian, and the various European states.


title: Compost

text: In the United States, some compost manufacturers participate in a testing program offered by a private lobbying organization called the U.S. Composting Council. The USCC was originally established in 1991 by Procter & Gamble to promote composting of disposable diapers, following state mandates to ban diapers in landfills, which caused a national uproar. Ultimately the idea of composting diapers was abandoned, partly since it was not proven scientifically to be possible, and mostly because the concept was a marketing stunt in the first place. After this, composting emphasis shifted back to recycling organic wastes previously destined for landfills. There are no bonafide quality standards in America, but the USCC sells a seal called "Seal of Testing Assurance" (also called "STA"). For a considerable fee, the applicant may display the USCC logo on products, agreeing to volunteer to customers a current laboratory analysis that includes parameters such as nutrients, respiration rate, salt content, pH, and limited other indicators.


title: Compost

text: Many countries such as Wales and some individual cities such as Seattle and San Francisco require food and yard waste to be sorted for composting (San Francisco Mandatory Recycling and Composting Ordinance).


title: Compost

text: The USA is the only Western country that does not distinguish sludge-source compost from green-composts, and by default 50% of US states expect composts to comply in some manner with the federal EPA 503 rule promulgated in 1984 for sludge products.


title: Compost

text: There are health risk concerns about PFASs ("forever chemicals") levels in compost derived from sewage sledge sourced biosolids, and EPA has not set health risk standards for this. The Sierra Club recommends that home gardeners avoid the use of sewage sludge-base fertilizer and compost, in part due to potentially high levels of PFASs. The EPA PFAS Strategic Roadmap initiative, running from 2021 to 2024, will consider the full lifecycle of PFAS including health risks of PFAS in wastewater sludge.


title: Compost

text: Composting dates back to at least the early Roman Empire, and was mentioned as early as Cato the Elder's 160 BCE piece . Traditionally, composting involved piling organic materials until the next planting season, at which time the materials would have decayed enough to be ready for use in the soil. The advantage of this method is that little working time or effort is required from the composter and it fits in naturally with agricultural practices in temperate climates. Disadvantages (from the modern perspective) are that space is used for a whole year, some nutrients might be leached due to exposure to rainfall, and disease-producing organisms and insects may not be adequately controlled.


title: Compost

text: Composting began to modernize somewhat from the 1920s in Europe as a tool for organic farming. The first industrial station for the transformation of urban organic materials into compost was set up in Wels, Austria in the year 1921. Early proponents of composting within farming include Rudolf Steiner, founder of a farming method called biodynamics, and Annie Francé-Harrar, who was appointed on behalf of the government in Mexico and supported the country in 1950–1958 to set up a large humus organization in the fight against erosion and soil degradation. Sir Albert Howard, who worked extensively in India on sustainable practices, and Lady Eve Balfour were also major proponents of composting. Composting was imported to America by the likes of:


title: Paul Scheer

text: Paul Christian Scheer (born January 31, 1976) is an American actor, comedian, writer, producer, director, and podcaster.


title: Paul Scheer

text: Scheer is a SAG award-winning actor known for his roles in Showtime's comedy series "Black Monday" and FX/FXX's "The League." Scheer co-created and starred in MTV's "Human Giant" and Adult Swim's series "". He has had recurring roles on ABC's "Fresh Off the Boat" and HBO's "Veep". He co-hosts the award-winning film discussion podcast "How Did This Get Made?" alongside his wife, June Diane Raphael, and "Unspooled", with film critic Amy Nicholson.


title: Paul Scheer

text: Scheer was born in Huntington, New York, to Gail Ann (Decarlo) and William Paul Scheer. Scheer attended Catholic schools during his childhood and graduated from St. Anthony's High School. Scheer began performing in high school with Chicago City Limits, a New York-based short-form improv group. He later attended New York University, where he majored in communication and education. Scheer often speaks about his early life on the "How Did This Get Made?" podcast.


title: Paul Scheer

text: In 1995, Scheer became a member of New York City's longest-running Off-Broadway comedy show, "Chicago City Limits". As a member of their touring company, Scheer extensively traveled throughout the United States and overseas.


title: Paul Scheer

text: In 1998, while at NYU, Scheer started performing at the Upright Citizen's Brigade Theater in New York City. Scheer performed in multiple weekly shows, including "Talk Show,The Real Real World" and the house team "Respecto Montalban". The group included Rob Riggle, Rob Huebel, Jack McBrayer, and Dannah Feinglass. They performed long-form improvisation to sold-out crowds every Saturday night for over five years and starred in a political sketch comedy show called "George Bush is a Motherfucker".


title: Paul Scheer

text: In 2002, Scheer created and starred in "Automatic Vaudeville" at the Ars Nova theater, which "The Hollywood Reporter" called "one of the top five shows in the country".


title: Paul Scheer

text: In 2006, Scheer moved to Los Angeles and was a regular performer at Upright Citizens Brigade Theatre in Los Angeles (UCBTLA) until it closed its doors in 2020 due to pandemic-related issues. He performed an improvised show based on audience members' Facebook profiles called "FACEBOOK". The show was named the "Best Improv Show" by "Los Angeles" magazine and has been profiled on "Good Morning America". Cast members include McBrayer, Riggle, and Huebel.


title: Paul Scheer

text: In 2003, Scheer was hired as a writer and performer for Oxygen’s "Meow TV". "Meow TV" was a project by Meow Mix that aired programming for cats and their owners.


title: Paul Scheer

text: From 2004 to the conclusion of the show’s first run in 2009, Scheer was a regular cast member on VH1’s "Best Week Ever". The show, which originally featured a panel of comedians including Scheer, shifted to a single host format under Paul F. Tompkins and provided comedic commentary on popular culture. Other panelists included Nick Kroll, John Mulaney and Patton Oswalt.