EU prepares in case Greek woes spread to Spain |
| Reuters - Mar 11, 2010 |
If Greece's debt crisis is giving the European Union a headache, it is minor compared to the pain it will suffer if a large member state such as Spain sinks into similar trouble.
Spain has an unemployment rate of almost 20 percent, large deficits, a heavily indebted private sector, and weak prospects for growth -- which could make its debt a target for speculators if Athens' problems prove contagious in the euro zone.
A Greek debt default would increase pressure on the euro but the damage would likely be limited since Athens accounts for less than 3 percent of the 16-country currency area's GDP.
A Spanish debt crisis would be much harder for the EU to handle because its economy is the euro zone's fourth-largest, accounting for nearly 12 percent of euro-wide GDP.
Read Full Article from Reuters
- Posted: 2010-03-11 10:50:44
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