Greece joined the eurozone in 2001, but the financial crisis of 2009 made Greece the focal point of Europe's debt issues. In 2010, Greece began to consider filing for bankruptcy, which gradually increased the dread of a second financial crisis among the peer members. At that point, the idea of Greece leaving the eurozone was widely held, and the phrase "Brexit" appeared.

Following are the main factors that lead to the Greece debt crisis:

• Corruption and tax evasion which left Greece in debt problems, had been consistent for many decades and were misreported to be in line with guidelines of the eurozone.
• The trade deficit also significantly contributed to the Greece crisis because when Greece became a member of the eurozone, the cost of wages went up very high, leading to unmatched positions with available resources.
• Major industries of Greece like shipping and tourism were going through a terrible ordeal which subsequently fueled the Greece crisis.

Following are the consequences of Grexit:

• The official exit of Greece from the eurozone had negative consequences. Expected that the initial impact of Grexit would be confined to the extent of minor economic trouble, but in the long term, many economists knew it would be a disaster that could easily impact other European member states at the same time and subsequently affect the entire eurozone. Grexit impacted investors’ confidence very badly, which could be felt in other eurozone, particularly Spanish, Italian, and Portuguese markets.
• Grexit also impacted the economic policies of the other eurozone members, which had economic and political relations with Greece. Due to Grexit, other members had to write down their respective budgets considerably. The budget deficits to which Greece owes money increase further, resulting in sovereign defaults. To recover these losses, the government had to raise taxes and further reduce the expenditures desired. All these factors reduced the demand for goods and services, which subsequently impacted the economy and people’s quality of living.