In enterprise it is quite common that it will not go very well or the way you planned it and your business bankrupts. The bankrupt is not good for the owner, for investors and for the employers of course. But what can you? Life goes on…But, if the one who bankrupts is the state – the consequences are much worse and it influences everyone.

Nowadays, quite often we see that the government falls apart, the savings of regular people just disappear, and the money of investors are gone as well….who pays the debts then? Next generations! But the question is: Why is this happening? Why are the states falling apart?

During the period of financial crisis the bankruptcy of the states are more frequent. Recently we have seen a few candidates for bankruptcy; such as: Hungary, Latvia, Ireland, Greece, Italy, Portugal, Spain. Not all of these countries have the same problems, but surely there are some common features…

The reasons of failure of the particular states usually are: too much spending of the governments, not functioning economy, improper tax system, too much debts, inappropriate value of currency and its proportion to other currencies, etc…


Country about which everyone is talking the most recently is Greece. It seems like that the worst times are gone. The only reason for it is the help from the partners from the European Union. EU has promised to help the country in every way; which mostly means – financial way. The promise is based on the loan in the amount of 45 milliard euro But the truth is, that Greece still is not safe. They have too many debts, bonds are sold with high interests and Greeks don’t feel like saving money, or spending less. Vladimír Baláž (an expert in prognostics) says that the situation continues to be bad and that the situation in Greece reminds him very much the situation in Argentina in 2001.

„The states do not see the consequences which arise from the fixed rate of exchange.” says Ján Tóth, an economist in UniCredit Bank.  The situation in Greece is similar to Argentine, because Greece people do not feel like leaving their luxury lives but on the other hand they do not want to pay higher taxes or any taxes. „Euro is a luxurious product for Greece and they shouldn’t have acquire it, because their economy is not good enough for it. “ thinks Baláž.


Katarína Hurkalová


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