Why is Greece in debt?

Greece's economic debt is threatening Euro currency and the unification of Eurozone. This problem is very serious and affects to all other countries even not in Eurozone. Surely, a lot of people want to know why Greek government is in debt crisis.

The first reason is the participation of Greece to Euro in 2001 required Greek government borrowed heavily in international capital markets to fund government budget and current account deficits to bring it into line with the euro. The reliance on financing from international capital markets left Greece highly vulnerable to shifts in investor confidence.

Secondly, the debt crisis has both domestic and international causes including weak revenue collection, high government spending and structural rigidities in Greece’s economy. For internationally, Greece’s access to capital at low interest rates after adopting the euro and weak enforcement of EU rules concerning debt and deficit ceilings facilitated Greece’s ability to accumulate high levels of external debt

Thirdly, the international crisis 2007-2010 started from America affected worldwide especially Europe because the strong tie between America and Europe, ofcourse including Greece.

Another cause is the slow reaction of Greek government even they did know some signals of financial crisis. The radical reform of the Greek government in 2009 brought some hopes but too late for any effect and now they must rely on rescue package from other countries.