Description:
Papandreou has many challenges. The most important one is how can he accomplish a surplus in the budget that adequate enough to pay some of the loans and achieve economic growth without affecting the satisfaction on the government policies? In addition, how to pass the new austerity programs that increase taxes and privatize the state's institutions? Papandreou as a leader, he never gives up hope. Although he was rejected twice by the voters, he was nominated again and won the election. He has to pass the new austerity package through the parliament and that cannot happen without getting the support of the other political parties. Passing this new package is essential for getting more than 110 billion euro bailout from the EU and IMF. Greece is currently facing a debt crisis that has domestic and international dimensions and political pressures represented by the Greeks' demonstrations against the harsh policies of the government. Greece has depended for a long time on loans in structuring its budget and has made its economy highly vulnerable, so it negatively was affected by the financial crisis in 2008. In that time the expenditures have increased and the revenues of the state' resources decreased. The Greek government sold in January 2010, more than $10.6 billion in bonds. However, Greece must borrow $71.8 billion to cover the debt's interest. In dealing with these problems, Papandreou should choose among the possible approaches presented by the policy advisors to get his country out of this crisis.