Europe's Growing Crisis

{
  "authors": [
    "Uri Dadush"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "",
  "programs": [],
  "projects": [],
  "regions": [
    "Western Europe",
    "United Kingdom",
    "France",
    "Germany",
    "North America"
  ],
  "topics": [
    "Economy"
  ]
}

In The Media

Europe's Growing Crisis

Recent cuts to the credit ratings of Spain and Portugal indicate that the crisis in Greece is spreading across Europe. Given the financial market pressure on Greece, debt restructuring appears inevitable, but it remains to be seen when it will occur.

By Uri Dadush

Published on Apr 29, 2010

Source: The Diane Rehm Show

Standard & Poor’s recently cut the credit rating of Greece, as well as Spain and Portugal, indicating that the crisis in Greece is spreading across Europe. In order to avert the crisis, Greece will need to engineer an “enormous fiscal cut” in order to stabilize their rising government debt, said Uri Dadush. However, it will be “very difficult for the Greeks to dig themselves out of this situation while maintaining their projected debt payments.”

Given the financial market pressure on Greece, “inevitably, some kind of restructuring of the debt has to happen” but it remains to be seen when this occurs. It can happen now, under tremendous market pressure and when banks will be extremely fragile, or, if the EU and IMF provide sufficient support, it can happen in the coming years once the world economy has recovered.

About the Author

Uri Dadush

Former Senior Associate, International Economics Program

Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.

Recent Work

Commentary
The Labors of Tsipras
- Uri Dadush
In The Media
Greece, Complacency, and the Euro
- Uri Dadush

Economy Western Europe United Kingdom France Germany North America

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Europe

Commentary
Strategic Europe
On NATO, Trump Should Embrace France Instead of Bashing It
Donald Trump’s repudiation of NATO goes against the Make America Great Again vision of a U.S.-centered foreign policy. If the goal is to preserve the alliance by boosting Europe’s commitments, leaning into France’s vision is the most America First way forward.
Rym Momtaz
Article
Rewiring the South Caucasus: TRIPP and the New Geopolitics of Connectivity
The U.S.-sponsored TRIPP deal is driving the Armenia-Azerbaijan peace process forward. But foreign and domestic hurdles remain before connectivity and economic interdependence can open up the South Caucasus.
Thomas de Waal, Areg Kochinyan, Zaur Shiriyev
Commentary
Strategic Europe
Is France Shifting Rightward?
The far right failed to win big in France’s municipal elections. But that’s not good news for the country’s left wing, which remained disunited while the broader right consolidated its momentum ahead of the 2027 presidential race.
Catherine Fieschi
Commentary
Strategic Europe
Time to Merge the Commission and EEAS
The EU is structurally incapable of reacting to today’s foreign policy crises. The union must fold the EEAS into the European Commission and create a security council better prepared to take action on the global stage.
Stefan Lehne
Commentary
Is the Radical-Right Threat Existential or Overstated?
Amid increased polarization and the influence of disinformation, radical-right parties are once again gaining traction across Europe. With landmark elections on the horizon in several countries, are the EU’s geostrategic vision and fundamental values under existential threat?
Catherine Fieschi, Cas Mudde

More Work from Carnegie Europe

Commentary

Strategic Europe

On NATO, Trump Should Embrace France Instead of Bashing It

Donald Trump’s repudiation of NATO goes against the Make America Great Again vision of a U.S.-centered foreign policy. If the goal is to preserve the alliance by boosting Europe’s commitments, leaning into France’s vision is the most America First way forward.

Rym Momtaz

Article

Rewiring the South Caucasus: TRIPP and the New Geopolitics of Connectivity

The U.S.-sponsored TRIPP deal is driving the Armenia-Azerbaijan peace process forward. But foreign and domestic hurdles remain before connectivity and economic interdependence can open up the South Caucasus.

Thomas de Waal, Areg Kochinyan, Zaur Shiriyev

Commentary

Strategic Europe

Is France Shifting Rightward?

The far right failed to win big in France’s municipal elections. But that’s not good news for the country’s left wing, which remained disunited while the broader right consolidated its momentum ahead of the 2027 presidential race.

Catherine Fieschi

Commentary

Strategic Europe

Time to Merge the Commission and EEAS

The EU is structurally incapable of reacting to today’s foreign policy crises. The union must fold the EEAS into the European Commission and create a security council better prepared to take action on the global stage.

Stefan Lehne

Commentary

Is the Radical-Right Threat Existential or Overstated?

Amid increased polarization and the influence of disinformation, radical-right parties are once again gaining traction across Europe. With landmark elections on the horizon in several countries, are the EU’s geostrategic vision and fundamental values under existential threat?

Catherine Fieschi, Cas Mudde