The Greece effect

The crisis that we are seeing in Greece is the result of a budget deficit and debt, these stem from all the welfare benefits (unemployment insurance, old-age assistance, health insurance) provided by the government. However, this is not Greece´s problem alone, but nearly all developed countries that face an increasingly aging population with huge health and retirement benefits, which have not been able to cover through taxes (see here). Greece's government is taking some measures, on Monday approved a bill aimed at reforming the social security system, which is expected to go bust in less than 15 years if left unrepaired. View details of the bill here.