The euro zone`s debt crisis

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The euro zone`s debt crisis

  1. 1. The euro zone`s debt crisis Liis Post
  2. 2. Outline <ul><li>Panic about the Greek government`s ability to repay its creditors </li></ul><ul><li>Its infecting influence to the other euro-area countries` sovereign debt </li></ul><ul><ul><li>Portugal </li></ul></ul><ul><ul><li>Spain </li></ul></ul><ul><ul><li>Italy </li></ul></ul><ul><ul><li>Ireland </li></ul></ul>
  3. 3. Greece <ul><li>Sovereign-debt crisis boiled over </li></ul><ul><li>Debts too great </li></ul><ul><li>Financial panic in Europe </li></ul><ul><li>Around €213 billion-worth of Greek government bonds </li></ul><ul><li>Foreign banks` lending €164 billion </li></ul><ul><li>Public debt unclear </li></ul>
  4. 4. Portugal <ul><li>Budget deficit 9.3% of GDP </li></ul><ul><li>Public debt 77% of GDP </li></ul><ul><li>Common weaknesses with Greece: </li></ul><ul><ul><li>Small economy </li></ul></ul><ul><ul><li>Competitiveness </li></ul></ul><ul><ul><li>Foreign debts run up </li></ul></ul><ul><li>Debt €198 billion </li></ul>
  5. 5. Spain <ul><li>Most at risk </li></ul><ul><li>Dependence on foreign finance </li></ul><ul><li>Public debt 53% of GDP </li></ul>
  6. 6. Italy and Ireland <ul><li>Italy – can hope to rely on domestic savers </li></ul><ul><li>Ireland – less prone to overseas finance </li></ul>
  7. 7. Conclusion <ul><li>IMF reckons that this year </li></ul><ul><ul><li>America’s net public debt – 70% of GDP </li></ul></ul><ul><ul><li>euro-zone `s net public debt – 68 % of GDP </li></ul></ul>
  8. 8. Read more <ul><li>From The Economist </li></ul><ul><li>April 29th 2010 </li></ul><ul><li>http://www.economist.com/displayStory.cfm?story_id=16009119 </li></ul>
  9. 9. Thank you for your attention!

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