As showdown talks over Greece take place in Europe this week, a quick examination of the recent history of bailouts is valuable.
Since 2008, the IMF has bailed out Ireland (2010), Portugal (2011), Cyprus (2013) and Greece (2010). Yet the fortunes of these 4 nations since the financial crisis could not tell a more different tale.
While Portugal, Ireland, and Cyprus have recovered the majority of their GDP since 2008, down 12%, 11%, and 8% respectively, Greece has charted a different path. Its GDP stands at just over 67% relative to what it was in 2008. In large part, it is the failure of the Greek economy to rebound in the period 2011-2014 like its European peers that has led the country to the precipice of default.
Will EU leaders decide to give Greece more breathing room? Or will Greece’s recent history overshadow its future? This week may see a resolution of a crisis many years in the making.