what will happen to greece when it defaults?
European Union
entailment
 In 2009 , a newly elected government in Greece revealed the falsification of its national budget data , and that its fiscal deficit for the year was 12 @.@ 7 % of GDP as opposed to the 3 @.@ 7 % espoused by the previous administration . This news alerted markets to the fact that Greece 's deficit exceeded the eurozone 's maximum of 3 % outlined in the Economic and Monetary Union 's Stability and Growth Pact . Investors concerned about a possible sovereign default rapidly sold Greek bonds . Given Greece 's prior decision to embrace the euro as its currency , it no longer held monetary policy autonomy and could not intervene to depreciate a national currency to absorb the shock and boost competitiveness , as was the traditional solution to sudden capital flight . The crisis proved contagious when it spread to Portugal , Italy , and Spain ( together with Greece these are collectively referred to as the PIGS ) . Ratings agencies downgraded these countries ' debt instruments in 2010 which further increased the costliness of refinancing or repaying their national debts . The crisis continued to spread and soon grew into a European sovereign debt crisis which threatened economic recovery in the wake of the Great Recession . In tandem with the IMF , the European Union members assembled a € 750 billion bailout for Greece and other afflicted nations . Additionally , the ECB pledged to purchase bonds from troubled eurozone nations in an effort to mitigate the risk of a banking system panic . The crisis is recognized by economists as highlighting the depth of financial integration in Europe , contrasted with the lack of fiscal integration and political unification necessary to prevent or decisively respond to crises . During the initial waves of the crisis , the public speculated that the turmoil could result in a disintegration of the eurozone and an abandonment of the euro . German Federal Minister of Finance Wolfgang Schäuble called for the expulsion of offending countries from the eurozone . Now commonly referred to as the Eurozone crisis , it has been ongoing since 2009 and most recently began encompassing the 2012 – 13 Cypriot financial crisis . 

neutral
 A series of currency devaluations and oil crises in the 1970s led most countries to float their currencies . The world economy became increasingly financially integrated in the 1980s and 1990s due to capital account liberalization and financial deregulation . A series of financial crises in Europe , Asia , and Latin America followed with contagious effects due to greater exposure to volatile capital flows . The global financial crisis , which originated in the United States in 2007 , quickly propagated among other nations and is recognized as the catalyst for the worldwide Great Recession . A market adjustment to Greece 's noncompliance with its monetary union in 2009 ignited a sovereign debt crisis among European nations known as the Eurozone crisis . 

neutral
 = = = Catastrophe and reforms = = = 

contradiction
 = = Reemerging Greek organizations = = 

neutral
 Financial uncertainty of the Othonian monarchy was the result of 
