Since early 2010, the Eurozone has been facing a major debt crisis. Greece as a Eurozone nation from the mid-1990's have been persistently spending more than its total accrued tax revenues. Because of this deficit, the country borrowed to contain and control its shortfalls and invariably its debt burden continued to rise. Underlying the Crisis As recently as 1990, the Greek state controlled about 75% of all business assets in the country and tightly regulated other sectors of the economy. The state reduced its stake to about 50% by 2008. However, according to the Organization for Economic Cooperation and Development (OECD), much of the private sector continues to "suffer from weighty and complex regulations and from the lack of a coherent and systematic approach to rule-making." In the decade before the crisis, a significant portion of rising government expenditures was allocated to rising public sector wages and benefits. As recently as 2009, Greek government expenditures accounted for 50% of GDP, with 75% of (non-interest) public spending going to public sector wages and social benefits. According to the OECD, while spending on public administration as a percentage of total public expenditure has been the highest in the OECD, there has been "no evidence that the quantity or quality of the services are superior." Analysts often point out that Greek politicians have traditionally viewed the provision of public sector jobs and benefits as an important way to grant favors and thereby secure electoral support. .
By 2010, Greece had an excessive debt problem which was overpowering it that there was open speculation it will default. Much of the debt was from the French and German banks. Greece was lent money in 2010 by the European government and the IMF to help repay its debt, but most of the money was used to repay this banks. Greece did not actually cut their debts substantially.
