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 Russia Eurasia Center

Commentary
Carnegie Politika
Does Russia Have Enough Soldiers to Keep Waging War Against Ukraine?
The Russian army is not currently struggling to recruit new contract soldiers, though the number of people willing to go to war for money is dwindling.
Dmitry Kuznets
Commentary
Carnegie Politika
Including Russia on the EU Financial Blacklist Will Hurt Ordinary People, Not the Kremlin
The paradox of the European Commission’s decision is that the main victims will not be those it formally targets. Major Russian businesses associated with the Putin regime have long adapted to sanctions with the help of complex schemes involving third countries, offshore companies, and nonpublic entities.
Alexandra Prokopenko
Commentary
Carnegie Politika
Why Didn’t the Ukraine War Turn Russia’s Ruling Class Against Putin?
A new book by Alexandra Prokopenko looks at why the Russian ruling class became the regime’s willing servants—and how they might fare in a post-Putin world.
Vladislav Gorin
Commentary
Carnegie Politika
Collateral Damage: The Frozen Foreign Assets of Middle-Class Russians
The volume of frozen private assets might seem insignificant compared with Russia’s sovereign reserves, but these are the savings of millions of people who believed that foreign securities were a safe investment and in the institution of private property.
Yulia Starostina
Commentary
Carnegie Politika
The Kremlin Has Weaponized Western Financial Checks to Punish Russian Dissidents
International compliance and anti-money laundering standards are currently formulated in such a way that the Western financial system does not differentiate between Russian political prisoners and ISIS militants.
Alexandra Prokopenko

More Work from Carnegie Russia Eurasia Center

Commentary

Carnegie Politika

Does Russia Have Enough Soldiers to Keep Waging War Against Ukraine?

The Russian army is not currently struggling to recruit new contract soldiers, though the number of people willing to go to war for money is dwindling.

Dmitry Kuznets

Commentary

Carnegie Politika

Including Russia on the EU Financial Blacklist Will Hurt Ordinary People, Not the Kremlin

The paradox of the European Commission’s decision is that the main victims will not be those it formally targets. Major Russian businesses associated with the Putin regime have long adapted to sanctions with the help of complex schemes involving third countries, offshore companies, and nonpublic entities.

Alexandra Prokopenko

Commentary

Carnegie Politika

Why Didn’t the Ukraine War Turn Russia’s Ruling Class Against Putin?

A new book by Alexandra Prokopenko looks at why the Russian ruling class became the regime’s willing servants—and how they might fare in a post-Putin world.

Vladislav Gorin

Commentary

Carnegie Politika

Collateral Damage: The Frozen Foreign Assets of Middle-Class Russians

The volume of frozen private assets might seem insignificant compared with Russia’s sovereign reserves, but these are the savings of millions of people who believed that foreign securities were a safe investment and in the institution of private property.

Yulia Starostina

Commentary

Carnegie Politika

The Kremlin Has Weaponized Western Financial Checks to Punish Russian Dissidents

International compliance and anti-money laundering standards are currently formulated in such a way that the Western financial system does not differentiate between Russian political prisoners and ISIS militants.

Alexandra Prokopenko