Effect of Greek Financial Crisis on the British Economy Essay

Effect of Greek Financial Crisis on the British Economy - Essay Example During the early days of 2010 sovereign debt was a subject of attention for the whole world. Sovereign debt is the total debt owed by a sovereign country like Greece to its creditors. As a result of this crisis, there was a panic in the financial market worldwide and euro suffered a huge decline in its value. Greece was helped by the EU and IMF to provide them with loans that could rescue the situation. This can be a short term solution to the problem but the obligations of long term debt will still persist or may even get worse (Abboushi, â€Å"Abstract†). David Cameron in one of his statements warned that British economy will suffer more due to this euro zone crisis. It remains a threat to the future of euro. There had been a decline in the growth rate of employment, especially in public sector of UK. The investors are losing confidence in the market and the financial market in UK suffered a setback. A deep recession is on the cards if the situation is not handled carefully. More support for the banking sector is needed and the Government should be forced to take some emergency steps to help improve the financial system, before the crisis worsens further. Even though Britain is not a part of euro zone, still budgetary deficit concerns of the country should be addressed immediately. British banks already hold a considerable amount of debt in Greece, which can be an area of major concern. Moreover, with Greece defaulting to pay their debts, the problem can spread over nations like Spain and Italy where UK has a much larger investment. In addition to this, euro zone is one of the biggest trading partners of UK, so obviously this crisis can have an impounding effect on UK’s economy if other big European economies falter (PRLog, â€Å"How the Greek economy can affect us all†). 2. Changes in the NHS led by the UK Government UK government took a bold step towards reforming National Health Services (NHS) in the country. There had been many major changes in NHS structure due to this decision of UK government and it is for the first time in the history of NHS that such radical changes are taking place. Hospitals are no longer under NHS. General Practitioners (GPs) and not the management bodies now have a huge role and responsibility and are in charge of major part of the budget. This move resulted in abolition of all the 10 strategic health authorities as well as 152 primary care trusts which are the management bodies of NHS. Most of the budget of NHS is now in the hands of GPs only and they have the authority to plan out things accordingly. The GPs are now to decide on the spending of NHS. This new re-structuring of NHS gives way to the development of a new board which is independent of any kind of political influence. It is completely an independent body now and has control over its own accountability. Health of public is now the responsibility of local authorities. NHS industry is now more of a top-down design with GPs sit ting at the top level. The patients are now being provided with more information through ‘HealthWatch’, a new type of body specially designed for the purpose. The patients now have the option to choose the GP according to their own wish and get registered with them. Since its inception in the year 1948, NHS has never experienced such drastic changes. Now the question remains as to what benefits these changes will bring to the people and the