In October last year, it became clear that something was not right in Greece. The recently elected socialist government of George Papandreou said the budget deficit would be 12.7 per cent.
A budget deficit is when a government spends more than it earns.
In December, the government said it would reduce the deficit to a little over 9 per cent this year. But in the meantime, more bad figures made it clear the Greek economy was in worse shape than other European country. Institutions to which it owed money - US$419 billion - began to doubt it could pay it back.
The concern is that problems in Greece could mean problems for all 16 nations in the so-called eurozone - all the nations that have adopted the euro as their currency.
And the problem is not only in Greece - other eurozone nations with crippling debts are Portugal, Ireland, Italy and Spain. Lumped together, newspapers are already calling them the 'PIGS'.
The main problem, most experts agree, is that Greece has been living beyond its means for a long time. About a third of all Greeks are employed by the government. They have generous holidays, and pension packages when they retire.
The good life makes Greece one of Europe's most popular holiday destinations. Unfortunately, it is a lifestyle it seems they will have to abandon.