The problem of the study confined to analyze the roots of the Greek debt crisis and the major deficiencies in the Greek economy and the actions taken by the Greek authorities and EU institutions to handle the crisis In this paper the Greek debt crisis was analyzed, explaining the factors that led to the outburst of the crisis, showing how the financial market lost confidence in the Greek economy so borrowing from financial market became impossible. Long negotiations took place before the troika approved bailing out Greece .Three bailout packages were approved but was accompanied with severe austerity measures and strong haircut to private bonds for the first time in history to be done by developed economy.  The study aims to identify how the Greek debt crisis outbroke and how Greece fulfilled the accession criteria to enter the Eurozone despite of the major deficiencies embodied to the Greek economy .And to identify the action taken by Greek government to handle the crisisLesson learned from the study that countries should not engage in excessive borrowing unless to develop its economy and create competitive advantage to adopt export growth approach and countries should not create monetary union unless they fulfilled the criteria of optimal currency area finally the EU surveillance mechanism must be enhanced.