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Initially currency devaluation helped finance the borrowing. After the introduction of the euro in Jan 2001, Greece was initially able to borrow due to the lower interest rates government bonds could command. The late-2000s financial crisis that began in 2007 had a particularly large effect on Greece. Two of the country's largest industries are tourism and shipping, and both were badly affected by the downturn with revenues falling 15% in 2009.[28] To keep within the monetary union guidelines, the government of Greece had misreported the country's official economic statistics.[29] [30] In the beginning of 2010, it was discovered that Greece had paid Goldman Sachs and other banks hundreds of millions of dollars in fees since 2001 for arranging transactions that hid the actual level of borrowing.[31] The purpose of these deals made by several subsequent Greek governments was to enable them to continue spending while hiding the actual deficit from the EU.[32] The emphasis on the Greek case has tended to overshadow similar serious irregularities, usage of derivatives and "massaging" of statistics (to cope with monetary union guidelines) that have also been observed in cases of other EU countries; however Greece was the most publicized case. In 2009, the government of George Papandreou revised its deficit from an estimated 6% (8% if a special tax for building irregularities were not to be applied) to 12.7%.[33] In May 2010, the Greek government deficit was estimated to be 13.6%[34] which is one of the highest in the world relative to GDP.[35] Greek government debt was estimated at 216 billion in January 2010.[36] Accumulated government debt was forecast, according to some estimates, to hit 120% of GDP in 2010.[37] The Greek government bond market relies on foreign investors, with some estimates suggesting that up to 70% of Greek government bonds are held externally.[38]
European sovereign debt crisis Estimated tax evasion costs the Greek government over $20 billion per year.[39] Despite the crisis, Greek government bond auctions have all been over-subscribed in 2010 (as of 26 January).[40] According to the Financial Times on 25 January 2010, "Investors placed about 20bn ($28bn, 17bn) in orders for the five-year, fixed-rate bond, four times more than the (Greek) government had reckoned on." In March, again according to the Financial Times, "Athens sold 5bn (4.5bn) in 10-year bonds and received orders for three times that amount."[41]
Greek debt crisis
Economy of Greece Euro (currency) 2000s financial crisis European debt crisis Greek financial crisis 20102011 protests
[42]
Downgrading of debt On 27 April 2010, the Greek debt rating was decreased to the upper levels of 'junk' status by Standard & Poor's amidst hints of default by the Greek government.[43] Yields on Greek government two-year bonds rose to 15.3% following the downgrading.[44] Some analysts continue to question Greece's ability to refinance its debt. Standard & Poor's estimates that in the event of default investors would fail to get 3050% of their money back.[43] Stock markets worldwide declined in response to this announcement.[45] Following downgradings by Fitch and Moody's, as well as S&P,[46] Greek bond yields rose in 2010, both in absolute terms and relative to German government bonds.[47] Yields have risen, particularly in the wake of successive ratings downgrading. According to The Wall Street Journal, "with only a handful of bonds changing hands, the meaning of the bond move isn't so clear."[48] On 3 May 2010, the European Central Bank (ECB) suspended its minimum threshold for Greek debt "until further notice",[49] meaning the bonds will remain eligible as collateral even with junk status. The decision will guarantee Greek banks' access to cheap central bank funding, and analysts said it should also help increase Greek bonds' attractiveness to investors.[50] Following the introduction of these measures the yield on Greek 10-year bonds fell to 8.5%, 550 basis points above German yields, down from 800 basis points earlier.[51] As of 26 November 2010, Greek 10-year bonds were trading at an effective yield of 11.8%.[52] Austerity and loan agreement On 5 March 2010, the Greek parliament passed the Economy Protection Bill, expected to save 4.8billion[53] through a number of measures including public sector wage reductions. On 23 April 2010, the Greek government requested that the EU/International Monetary Fund (IMF) bailout package be activated.[54] The IMF had said it was "prepared to move expeditiously on this request".[55] Greece needed money before 19 May, or it would face a debt roll over of $11.3bn.[56] [57] [58] The European Commission, the IMF and ECB set up a tripartite committee (the Troika) to prepare an appropriate programme of economic policies underlying a massive loan. The Troika was led by Servaas Deroose, from the European Commission, and included also Poul Thomsen (IMF) and Klaus Masuch (ECB) as junior partners. On 2 May 2010, a loan agreement was reached between Greece, the other eurozone countries, and the International Monetary Fund. The deal consisted of an immediate 45 billion in loans to be provided in 2010, with more funds available later. A total of 110 billion has been agreed.[59] [60] The interest for the eurozone loans is 5%, considered to be a rather high level for any bailout loan. According to EU officials, France and Germany demanded that their
European sovereign debt crisis military dealings with Greece be a condition of their participation in the financial rescue.[61] The government of Greece agreed to impose a fourth and final round of austerity measures. These include:[62] Public sector limit of 1,000 introduced to bi-annual bonus, abolished entirely for those earning over 3,000 a month. An 8% cut on public sector allowances and a 3% pay cut for DEKO (public sector utilities) employees. Limit of 800 per month to 13th and 14th month pension installments; abolished for pensioners receiving over 2,500 a month. Return of a special tax on high pensions. Changes were planned to the laws governing lay-offs and overtime pay. Extraordinary taxes imposed on company profits. Increases in VAT to 23%, 11% and 5.5%. 10% rise in luxury taxes and taxes on alcohol, cigarettes, and fuel. Equalization of men's and women's pension age limits. General pension age has not changed, but a mechanism has been introduced to scale them to life expectancy changes. A financial stability fund has been created. Average retirement age for public sector workers has increased from 61 to 65.[63] Public-owned companies to be reduced from 6,000 to 2,000.[63] On 5 May 2010, a nationwide general strike was held in Athens to protest to the planned spending cuts and tax increases. Three people were killed, dozens injured, and 107 arrested.[64] According to research published on 5 May 2010, by Citibank, the EMU loans will be pari passu and not senior like those of the IMF. In fact the seniority of the IMF loans themselves has no legal basis but is respected nonetheless. The loans should cover Greece's funding needs for the next three years (estimated at 30billion for the rest of 2010 and 40billion each for 2011 and 2012). Citibank finds the fiscal tightening "unexpectedly tough". It will amount to a total of 30billion (i.e. 12.5% of 2009 Greek GDP) and consist of 5% of GDP tightening in 2010 and a further 4% tightening in 2011.[65] Danger of default Further information: Sovereign default Without a bailout agreement, there was a possibility that Greece would prefer to default on some of its debt. The premiums on Greek debt had risen to a level that reflected a high chance of a default or restructuring. Analysts gave a wide range of default probabilities, estimating a 25% to 90% chance of a default or restructuring.[66] [67] A default would most likely have taken the form of a restructuring where Greece would pay creditors, which include the up to 110 billion 2010 Greece bailout participants i.e. Eurozone governments and IMF, only a portion of what they were owed, perhaps 50 or 25 percent.[68] It has been claimed that this could destabilise the Euro Interbank Offered Rate, which is backed by government securities.[69] Some experts have nonetheless argued that the best option at this stage for Greece is to engineer an orderly default on Greeces public debt which would allow Athens to withdraw simultaneously from the eurozone and reintroduce a national currency, such as its historical drachma, at a debased rate [70] (essentially, coining money). Economists who favor this approach to solve the Greek debt crisis typically argue that a delay in organising an orderly default would wind up hurting EU lenders and neighboring European countries even more.[71] At the moment, because Greece is a member of the eurozone, it cannot unilaterally stimulate its economy with monetary policy. For example, the U.S. Federal Reserve expanded its balance sheet by over $1.3trillion USD since the global financial crisis began, essentially printing new money and injecting it into the system by purchasing outstanding debt.[72]
European sovereign debt crisis Greece represents only 2.5% of the eurozone economy.[73] Despite its size, the danger is that a default by Greece will cause investors to lose faith in other eurozone countries. This concern is focused on Portugal and Ireland, both of whom have high debt and deficit issues.[74] Italy also has a high debt, but its budget position is better than the European average, and it is not considered among the countries most at risk.[75] Recent rumours raised by speculators about a Spanish bail-out were dismissed by Spanish Prime Minister Jos Luis Rodrguez Zapatero as "complete insanity" and "intolerable".[76] Spain has a comparatively low debt among advanced economies, at only 53% of GDP in 2010, more than 20 points less than Germany, France or the US, and more than 60 points less than Italy, Ireland or Greece,[77] and it doesn't face a risk of default.[78] Spain and Italy are far larger and more central economies than Greece; both countries have most of their debt controlled internally, and are in a better fiscal situation than Greece and Portugal, making a default unlikely unless the situation gets far more severe.[79] Objections to proposed policies See also May 2010 Greek protests The crisis is seen as a justification for imposing fiscal austerity[80] on Greece in exchange for European funding which would lower borrowing costs for the Greek government.[81] The negative impact of tighter fiscal policy could offset the positive impact of lower borrowing costs and social disruption could have a significantly negative impact on investment and growth in the longer term. Joseph Stiglitz has also criticised the EU for being too slow to help Greece, insufficiently supportive of the new government, lacking the will power to set up sufficient "solidarity and stabilisation framework" to support countries experiencing economic difficulty, and too deferential to bond rating agencies.[82] As an alternative to the bailout agreement, Greece could have left the eurozone. Wilhelm Hankel, professor emeritus of economics at the University of Frankfurt am Main suggested[83] in an article published in the Financial Times that the preferred solution to the Greek bond 'crisis' is a Greek exit from the euro followed by a devaluation of the currency. Fiscal austerity or a euro exit is the alternative to accepting differentiated government bond yields within the Euro Area. If Greece remains in the euro while accepting higher bond yields, reflecting its high government deficit, then high interest rates would dampen demand, raise savings and slow the economy. An improved trade performance and less reliance on foreign capital would be the result. In the documentary Debtocracy made by a group of Greek journalists, it is argued that Greece should create an audit commission, and force bondholders to suffer from losses, like Ecuador did.
main Irish-based banks who had financed a property bubble. On 29 September 2008 the Finance Minister Brian Lenihan, Jnr issued a one-year guarantee to the banks' depositors and bond-holders. He renewed it for another year in September 2009 soon after the launch of the National Asset Management Agency, a body designed to remove bad loans from the six banks. The December 2008 hidden loans controversy within Anglo Irish Bank had led to the resignations of three executives, including chief executive Sean FitzPatrick. A mysterious "Golden Circle" of ten businessmen are being investigated over shares they purchased in Anglo Irish Bank, using loans from the bank, in 2008. The Anglo Irish Bank Corporation Bill 2009 was passed to nationalise Anglo Irish Bank was voted through Dil ireann and passed through Seanad ireann without a vote on 20 January 2009.[91] President Mary McAleese then signed the bill at ras an Uachtarin the following day, confirming the bank's nationalisation.[92] In April 2010, following a marked increase in Irish 2-year bond yields, Ireland's NTMA state debt agency said that it had "no major refinancing obligations" in 2010. Its requirement for 20 billion in 2010 was matched by a 23 billion cash balance, and it remarked: "We're very comfortably circumstanced".[93] On 18 May the NTMA tested the market and sold a 1.5billion issue that was three times oversubscribed.[94]
A graph showing the economic data from Portugal, Italy, Ireland, Greece, United Kingdom, Spain, Germany, the EU and the eurozone for 2009. The data is taken from Eurostat.
Long-term interest rates of selected European countries (secondary market yields of government bonds with maturities [84] of close to ten years). Note that weak non-eurozone countries (Hungary, Romania) lack the sharp rise in interest rates characteristic of weak eurozone countries.
European sovereign debt crisis By September 2010 the banks could not raise finance and the bank guarantee was renewed for a third year. This had a negative impact on Irish government bonds, government help for the banks rose to 32% of GDP, and so the government started negotiations with the ECB and the IMF, resulting in the 85 billion "bailout" agreement of 29 November 2010.[95] [96] In February the government lost the ensuing Irish general election, 2011. In April 2011, despite all the measures taken, Moody's downgraded the banks' debt to junk status.[97] Debate continues on whether Ireland will need a "second bailout".[98] Portugal A report published in January 2011 by the Dirio de Notcias demonstrated that in the period between the Carnation Revolution in 1974 and 2010, the democratic Portuguese Republic governments have encouraged over-expenditure and investment bubbles through unclear public-private partnerships and funding of numerous ineffective and unnecessary external consultancy and advisory of committees and firms. This allowed considerable slippage in state-managed public works and inflated top management and head officer bonuses and wages. Persistent and lasting recruitment policies boosted the number of redundant public servants. Risky credit, public debt creation, and European structural and cohesion funds were mismanaged across almost four decades. The Prime Minister Scrates's cabinet was not able to forecast or prevent this in 2005, and later it was incapable of doing anything to improve the situation when the country was on the verge of bankruptcy by 2011.[99] Robert Fishman, in the New York Times article "Portugal's Unnecessary Bailout", points out that Portugal fell victim to successive waves of speculation by pressure from bond traders, rating agencies and speculators. In the first quarter of 2010, before markets pressure, Portugal had one of the best rates of economic recovery in the EU. Industrial orders, exports, entrepreneurial innovation and high-school achievement the country matched or even surpassed its neighbors in Western Europe.[100] On 16 May 2011 the Eurozone leaders officially approved a 78billion bailout package for Portugal. The bailout loan will be equally split between the European Financial Stabilisation Mechanism, the European Financial Stability Facility, and the International Monetary Fund.[101] According to the Portuguese finance minister, the average interest rate on the bailout loan is expected to be 5.1%[102] As part of the bailout, Portugal agreed to eliminate its golden share in Portugal Telecom to pave the way for privatization.[103] [104] Portugal became the third Eurozone country, after Ireland and Greece, to receive a bailout package. On 6 July 2011 it was confirmed that the ratings agency Moody's had cut Portugal's credit rating to junk status, Moody's also launched speculation that Portugal may follow Greece in requesting a second bailout.[105] Spain Shortly after the announcement of the EU's new "emergency fund" for eurozone countries in early May 2010, Spain's government announced new austerity measures designed to further reduce the country's budget deficit.[106] The socialist government had hoped to avoid such deep cuts, but weak economic growth as well as domestic and international pressure forced the government to expand on cuts already announced in January. As one of the largest eurozone economies the condition of Spain's economy is of particular concern to international observers, and faced pressure from the United States, the IMF, other European countries and the European Commission to cut its deficit more aggressively.[107] [108] According to the Financial Times, Spain has succeeded in trimming its deficit from 11.2% of GDP in 2009 to 9.2% in 2010.[109] It should be noted that Spain's public debt (60.1% of GDP in 2010) is significantly lower than that of Greece (142.8%), Italy (119%), Portugal (93%), Ireland (96.2), and Germany (83.2%), France (81.7%) and the United Kingdom (80.0%).[110] [111]
European sovereign debt crisis Belgium In 2010, Belgium's public debt was 100% of its GDP the third highest in the Euro zone after Greece and Italy[112] and there were doubts about the financial stability of the banks.[113] After inconclusive elections in June 2010, by July 2011[114] the country still had only a caretaker government as parties from the two main language groups in the country (Flemish and Walloon) were unable to reach agreement on how to form a majority government.[112] Financial analysts forecast that Belgium would be the next country to be hit by the financial crisis as Belgium's borrowing costs rose.[113] However the government deficit of 5% was relatively modest and Belgian government 10-year bond yields in November 2010 of 3.7% were still below those of Ireland (9.2%), Portugal (7%) and Spain (5.2%).[113] Furthermore, thanks to Belgium's high personal savings rate, the Belgian Government financed the deficit from mainly domestic savings, making it less prone to fluctuations of international credit markets.[115]
European sovereign debt crisis Switzerland In September 2011, the Swiss National Bank weakened the Swiss franc to a floor of 1.20[121] francs per euro. The franc has been appreciating against the euro during to the crisis, harming Swiss exporters. The SNB surprised currency traders by pledging that "it will no longer tolerate a euro-franc exchange rate below the minimum rate of 1.20 francs." This is the biggest Swiss intervention since 1978.
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European sovereign debt crisis After initially falling to a four-year low early in the week following the announcement of the EU guarantee packages, the euro rose as hedge funds and other short-term traders unwound short positions and carry trades in the currency.[145] While the aid package has so far averted a financial panic, international credit rating agencies consider that eurozone countries such as Portugal continue to have economic difficulties.[146] In July 2011, it was agreed during the EU summit Greece should receive EU loans at lower interest rates of 3.5%.[147] In September, 2011, Jrgen Stark became the second German after Axel A. Weber to resign from the ECB Governing Council in 2011. Weber, the former Deutsche Bundesbank president, was once thought to be a likely successor to Jean-Claude Trichet as bank president. He and Stark were both thought to have resigned due to "unhappiness with the ECBs bond purchases, which critics say erode the banks independence". Stark was "probably the most hawkish" member of the council when he resigned. Weber was replaced by his Bundesbank successor Jens Weidmann and "[l]eaders in Berlin plan to push for a German successor to Stark as well, news reports said".[148]
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European sovereign debt crisis purchase the goods. However, many of the countries involved in the crisis are on the Euro, so this is not an available solution at present. Alternatively, trade imbalances might be addressed by changing consumption and savings habits. For example, if a country's citizens saved more instead of consuming imports, this would reduce its trade deficit. Likewise, reducing budget deficits is another method of raising a country's level of saving. Capital controls that restrict or penalize the flow of capital across borders is another method that can reduce trade imbalances. Interest rates can also be raised to encourage domestic saving, although this benefit is offset by slowing down an economy and increasing government interest payments.[161] The suggestion has been made that long term stability in the eurozone requires a common fiscal policy rather than controls on portfolio investment.[162] In exchange for cheaper funding from the EU, Greece and other countries, in addition to having already lost control over monetary policy and foreign exchange policy since the euro came into being, would therefore also lose control over domestic fiscal policy. Finally, there has been some criticism over the austerity measures implemented by most European nations to counter this debt crisis. Apart from arguments over whether or not austerity, rather than increased or frozen spending, is a macroeconomic solution, there has also been a sense of unjust crisis management which mostly stems from the notion that, as a direct consequence of the Financial crisis of 20072010, the working population should not be held responsible for the economic mismanagement errors of economists, investors, and bankers. Over 23 million EU workers have become unemployed as a consequence of the global economic crisis of 20072010, while thousands of bankers across the EU have become millionaires despite collapse or nationalization (ultimately paid for by taxpayers) of institutions they worked for during the crisis, a fact that has led many to call for additional regulation of the banking sector across not only Europe, but the entire world.[163]
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Two-currencies speculation
Bloomberg has suggested that, if the Greek and Irish bailouts should fail, an alternative is for Germany to leave the eurozone in order to save the currency through depreciation[168] instead of austerity. The Wall Street Journal conjectures that Germany could return to the Deutsche Mark,[169] or create another currency union[170] with the Netherlands, Austria, Finland, and other European countries that have a positive current account balance, such as Denmark, Norway, and Sweden. A monetary union of these seven current account surplus countries would create the world's largest creditor bloc that is bigger than China[171] or Japan. Without the German-led bloc, the WSJ and other writers suggest, a residual French-led euro will then have the flexibility to keep interest rates[172] low and engage in quantitative easing[173] or fiscal stimulus in support of a job-targeting economic policy[174] instead of inflation targeting in the current configuration. The German-led bloc can lawfully exit the eurozone, by simply breaking the Maastricht criteria for membership, for example the three percent deficit to GDP rule, or by negotiating an exit with the rest of the eurozone if there is a failure of any of the bailouts. The French-led euro bloc is expected to grow its combined current account deficits, comparable to the
European sovereign debt crisis United States, increasing its usage overseas and improving its status as reserve currency. A monetary union of all the remaining current account deficit countries would create the world's second largest deficit bloc, second only to the United States, the owner of the world's primary reserve currency. In order to overtake the dollar, the eurozone must do the following. First, let the German-led bloc exit the eurozone orderly. Second, give up the stability mandate copied from the Bundesbank. Third, import more goods and export more of its paper overseas. And fourth, build economic governance and fiscal union in the leftover eurozone. The German-led bloc will be less inflationary than the euro, but it will not be as widely used internationally as the euro. This can benefit all of Europe, dependent on the economic goals and global ambitions of each EU member state. In September 2011, Joaquin Almunia, an EU commissioner, has lashed out against the bloc of Germany, Netherlands, Finland, Austria.[175]
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Heterodox recommendations
The school of economists who are, broadly, adherents of the post-Keynesian school of the Modern Monetary Theory have condemned the introduction of the Euro currency from the beginning,[176] on the basis that the Eurozone does not fulfill the necessary criteria for an optimal currency area. The latter view is supported also by non-Keynesian economists, such as Luca A. Ricci, of the IMF.[177] Others have even declared an urgent need for more radical shift in perspective, "a new science of macroeconomics".[178] As the debt crisis expanded beyond Greece, these economists continued to advocate, albeit more forcefully, the disbandment of the Eurozone. If this is not immediately feasible, they recommended that Greece and the other debtor nations unilaterally leave the Eurozone, default on their debts, regain their fiscal sovereignty, and re-adopt national currencies.[179] [180] Others have suggested that it's Germany that should first leave the Eurozone in order to save it,[181] with an anticipated "huge boost" to its members' competitiveness via the "(likely) substantial fall in the Euro against the newly reconstituted Deutsche Mark".
Controversies
Odious debt
Some protesters, commentators such as Libration correspondent Jean Quatremer and the Lige based NGO CADTM allege that the debt should be characterized as odious debt. The Greek documentary Debtocracy examines whether the recent Siemens scandal and uncommercial ECB loans which were conditional on the purchase of military aircraft and submarines are evidence that the loans amount to odious debt and that an audit would result in invalidation of a large amount of the debt.
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Media
There has been considerable controversy about the role of the English-language press in the regard to the bond market crisis.[219] [220] The Spanish Prime Minister Jos Luis Rodrguez Zapatero has suggested that the recent financial market crisis in Europe is an attempt to draw international capital away from the euro[221] [222] in order that countries, such as the U.K. and the U.S., can continue to fund their large external deficits which are matched by large government deficits.[13] The U.S. and U.K. do not have large domestic savings pools to draw on and therefore are dependent on external savings.[223] This is not the case in the eurozone which is self funding.[224] Zapatero ordered the Centro Nacional de Inteligencia intelligence service (National Intelligence Center, CNI in Spanish) to investigate the role of the "Anglo-Saxon media" in fomenting the crisis.[225] [226] [227] [228] [229] [230] [231] No results have so far been reported from this investigation. Greek Prime Minister Papandreou is quoted as saying that there was no question of Greece leaving the euro and suggested that the crisis was politically as well as financially motivated. "This is an attack on the eurozone by certain other interests, political or financial".[232] At the same time, a statistic on the articles referenced here shows that only "bad" news was propagated by the media and never "good" news.
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Role of speculators
Financial speculators and hedge funds engaged in selling euros have also been accused by both the Spanish and Greek Prime Ministers of worsening the crisis.[233] [234] Angela Merkel has stated that "institutions bailed out with public funds are exploiting the budget crisis in Greece and elsewhere."[235] The role of Goldman Sachs[236] in Greek bond yield increases is also under scrutiny.[237] It is not yet clear to what extent this bank has been involved in the unfolding of the crisis or if they have made a profit as a result of the sell-off on the Greek government debt market. In response to accusations that speculators were worsening the problem, some markets banned naked short selling for a few months.[238]
Finland collateral
On August 18, as requested by the Finnish parliament as a condition for any further bailouts, it became apparent that Finland would receive collateral from Greece to participate in support for the Greek economy.[239] Austria, the Netherlands, Slovenia, and Slovakia responded with irritation over this special guarantee for Finland and demanded equal treatment across the Eurozone, or a similar deal with Greece, as not to increase the risk level over their participation in the bailout.[240] The main point of contention was that the collateral is aimed to be a cash deposit, a collateral the Greeks can only give by recycling part of the funds loaned by Finland for the bailout, which means Finland and the other Eurozone countries guarantee the Finnish loans in the event of a Greek default.[241] [242]
References
[1] http:/ / www. bloomberg. com/ apps/ quote?ticker=GGGB2YR:IND [2] George Matlock (16 February 2010). "Peripheral euro zone government bond spreads widen" (http:/ / www. reuters. com/ article/ idUSLDE61F0W720100216). Reuters. . Retrieved 28 April 2010. [3] "Acropolis now" (http:/ / www. economist. com/ node/ 16009099). The Economist. 29 April 2010. . Retrieved 22 June 2011. [4] Brian Blackstone, Tom Lauricella, and Neil Shah (5 February 2010). "Global Markets Shudder: Doubts About U.S. Economy and a Debt Crunch in Europe Jolt Hopes for a Recovery" (http:/ / online. wsj. com/ article/ SB10001424052748704041504575045743430262982. html). The Wall Street Journal. . Retrieved 10 May 2010. [5] Bruce Walker (9 April 2010). "Greek Debt Crisis Worsens" (http:/ / www. thenewamerican. com/ index. php/ world-mainmenu-26/ europe-mainmenu-35/ 3274-greek-debt-crisis-worsens). The New American. . Retrieved 28 April 2010. [6] "Greek/German bond yield spread more than 1,000 bps" (http:/ / www. financialmirror. com/ News/ Cyprus_and_World_News/ 20151). Financialmirror.com. 28 April 2010. . Retrieved 5 May 2010. [7] "Gilt yields rise amid UK debt concerns" (http:/ / www. ft. com/ cms/ s/ 0/ 7d25573c-1ccc-11df-8d8e-00144feab49a. html). Financial Times. 18 February 2010. . Retrieved 15 April 2011. [8] "How the Euro Became Europe's Greatest Threat," Der Spiegel, 20 June 2011. (http:/ / www. spiegel. de/ international/ europe/ 0,1518,769329,00. html) [9] "Greek debt crisis: eurozone ministers meet amid deepening gloom," The Guardian, 19 June 2011. (http:/ / www. guardian. co. uk/ business/ 2011/ jun/ 19/ greek-debt-crisis-eurozone-ministers?intcmp=239) [10] "A long day in Greece," The Economist, 16 June 2011 (http:/ / www. economist. com/ blogs/ newsbook/ 2011/ 06/ greeces-political-crisis) [11] "Athens protests: Syntagma Square on frontline of European austerity protests," The Guardian, 19 June 2011. (http:/ / www. guardian. co. uk/ world/ 2011/ jun/ 19/ athens-protests-syntagma-austerity-protests) [12] "EU leaders pledge to do what is needed to help Greece". BBC, 23 June 2011 (http:/ / www. bbc. co. uk/ news/ world-europe-13886099) [13] "Britain's deficit third worst in the world, table" (http:/ / www. telegraph. co. uk/ finance/ financetopics/ financialcrisis/ 7269629/ Britains-deficit-third-worst-in-the-world-table. html). The Daily Telegraph (London). 19 February 2010. . Retrieved 29 April 2010. [14] "Fiscal Deficit and Unemployment Rate, FT" (http:/ / blogs. ft. com/ money-supply/ files/ 2010/ 01/ misery. gif). . Retrieved 5 May 2010. [15] "Timeline: Greece's economic crisis" (http:/ / www. reuters. com/ article/ idUSTRE6124EL20100203). Reuters. 3 February 2010. . Retrieved 29 April 2010. [16] "EU ministers offer 750bn-euro plan to support currency" (http:/ / news. bbc. co. uk/ 1/ hi/ business/ 8671632. stm). BBC News. 10 May 2010. . Retrieved 11 May 2010. [17] Gabi Thesing and Flavia Krause-Jackson (3 May 2010). "Greece Gets $146 Billion Rescue in EU, IMF Package" (http:/ / www. bloomberg. com/ apps/ news?pid=20601087& sid=a9f8X9yDMcdI& pos=1). Bloomberg. . Retrieved 10 May 2010. [18] Treanor, Jill and Elliott, Larry Ireland to get 85bn loan in deal that will nationalise its banks (http:/ / www. guardian. co. uk/ business/ 2010/ nov/ 24/ ireland-loan-bailout-nationalise-banks) The Guardian, 24 November 2010, Retrieved 19 May 2011
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External links
Interactive Map of the Debt Crisis (http://www.economist.com/blogs/dailychart/2011/02/ europes_economies) Economist Magazine, 9 February 2011 Map of European Debts (http://www.nytimes.com/interactive/2010/04/06/business/global/ european-debt-map.html) New York Times 20 December 2010 Budget deficit from 2007 to 2015 (http://www.eiu.com/eurodebt) Economist Intelligence Unit 30 March 2011 Protests in Greece in Response to Severe Austerity Measures in EU, IMF Bailout (http://www.democracynow. org/2010/5/4/protests_in_greece_in_response_to) video report by Democracy Now! Diagram of Interlocking Debt Positions of European Countries (http://www.nytimes.com/interactive/2010/05/ 02/weekinreview/02marsh.html) New York Times 1 May 2010 Argentina: Life After Default (http://www.soundsandcolours.com/articles/argentina/ argentina-lessons-learnt-from-the-aftermath-of-default/) Sand and Colours 2 August 2010 Google public data (http://www.google.com/publicdata/overview?ds=ds22a34krhq5p_): Government Debt in Europe Stefan Collignon: Democratic requirements for a European Economic Government (http://library.fes.de/ pdf-files/id/ipa/07710.pdf) Friedrich-Ebert-Stiftung, December 2010 (PDF 625 KB) Nick Malkoutzis: Greece - A Year in Crisis (http://library.fes.de/pdf-files/id/ipa/08208.pdf) Friedrich-Ebert-Stiftung, Juni 2011 Rainer Lenz: Crisis in the Eurozone (http://library.fes.de/pdf-files/id/ipa/08169.pdf) Friedrich-Ebert-Stiftung, Juni 2011
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License
Creative Commons Attribution-Share Alike 3.0 Unported http:/ / creativecommons. org/ licenses/ by-sa/ 3. 0/