A referendum – a vote in which everyone of voting age can take part was held to decide whether the UK should leave or remain in the European Union and Leave won. <what is the difference b/s referendum and plebiscite?>
Without going into the history-
Conservative govt led by David Cameron had promised this referendum if they won the general election and as they won this referendum was held
So as UK is not party to Schengen, you had to take Visa.
EU works through 4 main institutions
Although this news does not involve India, but it is still useful to be aware of the basic events around the world. Terms such as Lisbon Treaty etc can also be asked in prelims.
This is an interesting and innovative idea for essay.
A Bollywood take on the crisis!
Here is the ultimate block buster in Economics. Isme action hain, drama hain, austerity hain, reforms hain, growth hain, depression hain, there are scams galore and bro-mance to boot! How could Bollywood not move in to create a movie?
Since his successful book, Capital in the Twenty-First Century, the Frenchman Thomas Piketty has been considered one of the most influential economists in the world.
Germany Has Never Repaid its Debts. It Has No Right to Lecture Greece.
So you’re telling us that the German Wirtschaftswunder [“economic miracle”] was based on the same kind of debt relief that we deny Greece today?
Exactly. After the war ended in 1945, Germany’s debt amounted to over 200% of its GDP. Ten years later, little of that remained: public debt was less than 20% of GDP. Around the same time, France managed a similarly artful turnaround. We never would have managed this unbelievably fast reduction in debt through the fiscal discipline that we today recommend to Greece.
The Greeks have voted resoundingly against the economic policies that its creditors in the European Union want it to pursue.
But what next?
There is one principal economic lesson from the Greek crisis: a monetary union cannot work well unless there is a fiscal union as well.
The Grand European Project : Genesis
At the end of World War II, visionaries such as Jean Monnet convinced Adenauer of Germany and Robert Schuman of France—that deeper economic engagement between European countries would be the best way to prevent a repeat of the mistakes that led to so much bloodshed in Europe between 1914 and 1945.
Brief Timeline –
A few Trivia questions –
The Greek episode has exposed fundamental assumptions about the role of the state and its capacity for reform to a searing examination.
Two key takeaways:
In this year’s budget, the government pushed back by a year, to 2017-18, a deadline for cutting the fiscal deficit to 3% of the gross domestic product. For now, the government has largely chosen to focus on disinvestment as a means of deficit reduction but ultimately it will need to tackle the revenue deficit and unfunded welfare subsidies.
The Greek Prime Minister has declared that the country will hold a referendum on July 5 on whether or not to accept the debt deal that has been proposed by its international creditors.
Greece’s creditors suggested for the first time that a deal to avert bankruptcy is in sight after a proposal by Athens made significant concession on pension cuts. They will be coming to the table for discussions on tax cuts & EU + IMF might just unlock an aid.
But first things first, Greece makes up just 2% of the euro zone economy, so should you even care about what finally happens?
Above and beyond the economics of the Greek crisis, however, what is clear is that the political implications of a default and possible euro exit would be huge and largely negative.
Governments in the other countries on the receiving end of EU-mandated austerity having been closely following events there. Debt relief offered to Athens might inflame their own opponents of austerity. Should Greece exit the euro and perform relatively well, such pressures would increase!