Europe's Frightening Web of Debt

Today, Greece committed itself to undertake austerity budget cuts in return for a multi-billion dollar European Union/IMF bailout of €110bn (£95bn). Greece’s deficit reached 13.6% of gross domestic product last year.
As negotiations were concluding between the socialist government of George Papandreou, the IMF and the EU over the rescue package, anger among the ungrateful Greek populace eruped in violent May Day protests against the EU for insisting on tough austerity measures. Youths in gas masks and hoods set fire to vehicles, smashed shop fronts and threw molotov cocktails and rocks at police. Tourists were cut off from their hotels as thousands of communists, civil servants and private-sector workers converged on a main square in Athens to vent their rage.
But Greece is not the only country in Europe in trouble. Take a look at this graphic representation of Europe’s web of debt.
From the New York Times, May 1, 2010:

Banks and governments in these five shaky economies owe each other many billions of euros — converted here to dollars — and have even larger debts to Britain, France and Germany. Arrow widths are proportional to debt amounts. Related Article »

Rate this post

Please follow and like us:

Leave a Reply

Notify of

I think Western society is doomed, period.
We have finally managed to spend ourselves into oblivion, and I think that is about to reach up and bite us all right in the ass, both here and in Western Europe.