A Comparative Analysis of the Greek and Romanian Public Finances: 2000-2008

Abstract

In this paper we analyze the situation of the Public Finances for Greece and Romania for the 2000-2008 period, attempting to identify the fundamental factors that lead to the poor situation of the two countries in the current period. Currently, Greece and Romania are facing difficult financial situations, confronted with record levels of public debt and deficits, being forced to close urgent financial agreements with the European Commission and IMF to avoid financial collapse. In the study we analyze the main parameters of the government finances of Greece and Romania and compare them with the average levels of the European Union.