A country case study provides an analysis of the country’s modern or contemporary developments. The 2008 financial crisis and its subsequent recession meant many things to almost every country especially the US, Greece, Ireland, Portugal, and Spain (Mceachern, 2012:26). However, the hardest-hit nation was Greece where the country had to resolve to borrow from international money lending institutions such as the IMF. Due to the financial crisis, conditions in the financial markets changed where banks relaxed in interbank lending or purchase of any government debt otherwise known as bonds. Due to this situation, financial analysts and policymakers speculated the presence of financial pressures within peripheral economies since such economies had accumulated huge deficits within their government spending. With increased deficits in Greece’s government spending, the country started experiencing increased debt levels. With this respect, it is agreeable that the recent financial crisis of 2008 and subsequent recession affected Greece by skyrocketing its government spending. This, in turn, increased Greece’s interest rates on government debt.

Due to increased government spending and increased interest in government bonds, the country of Greece faced subsequent shifts in her socioeconomic situation. For one, both Greece could not face a recession nor withstand the ongoing financial crisis (Kolb, 2011:81). As such, she needed a “massive bailout” which would only be in the form of lending, particularly from the EU. Since 2007, economic crises were severely devastating especially to countries with divergent political standings. Additionally, there were imminent cases where Greece and other peripheral economies faced the deepest and slowest economic recovery. With reference to key indicators of a Greece’s growth indicators, the 2008 financial crisis and its subsequent recession exerted a heavy toll on her economic development, political sensation, and socioeconomic spectrum.