However each chose a different path to reach on above figures. Ireland wound up saving banks, Spain went through a housing bubble, tax revenues were not high for expenses but borrowing was less though. Greece not only borrowed but overspent, had less economic production and some creative account-keeping. Data as per Feb 2012- * this may have changed. Countries Japan Greece Italy Ireland Portugal Belgium France Germany UK Debt as a % of GDP 233.10% 168.20% 120.50% 108.10% 101.60% 97.20% 85.40% 81.80% 80.90% Unemployment rate 4.60% 19.20% 8.90% 14.50% 13.60% 7.20% 9.90% 5.50% 8.40% Credit rating (Moody's) Aa3 Ca A3 ba1 Ba3 Aa1 Aaa Aaa Aaa
the same work ethics, retirement ages or budget discipline — you end up with German savers seething at Greek workers, and vice versa. How it started? This all started with the formation of European Union (EU). In the year 1958, European Coal and Steel community was established which later became EU by the Maastricht Treaty in 1993. Euro was introduced as the single currency and countries started to join EU. So how did EU helped European countries? Before EU, countries like PIIGS* were borrowing at a much higher rate than other countries. With them coming together their borrowing rate fell. They started borrowing at rates on which Germany was borrowing. Now can you compare German economy with Greece? No, but Greece and others did not realize the same until the bubble burst in 2009 after the US financial outburst. These countries than had enormous amount of funds flowing