{"id":5173,"date":"2011-12-01T23:27:46","date_gmt":"2011-12-02T04:27:46","guid":{"rendered":"http:\/\/www.jasonapollovoss.local\/?p=5173"},"modified":"2018-09-21T02:04:32","modified_gmt":"2018-09-21T06:04:32","slug":"key-players-in-the-european-sovereign-debt-crisis","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2011\/12\/01\/key-players-in-the-european-sovereign-debt-crisis\/","title":{"rendered":"Key Players In the European Sovereign Debt Crisis"},"content":{"rendered":"

Complicating matters in resolving the European sovereign debt crisis<\/a> have been the large number of players, each of whom has a stake in the outcome of the crisis. Individual nations<\/a> have played a role in the crisis, none more so than Greece. Tiny, in terms of gross domestic product (GDP), the Mediterranean birthplace of democracy has served as a crucible, testing the democratic underpinnings of the European Union.<\/a><\/span><\/p>\n

\n\n\n\n\n\n\n\n
JUMP TO SECTION:
\n<\/strong><\/span><\/td>\n<\/tr>\n
KEY PLAYERS<\/strong><\/a><\/span><\/td>\n<\/tr>\n
INSTITUTIONS<\/strong><\/a><\/span><\/td>\n<\/tr>\n
COUNTRIES<\/strong><\/a><\/span><\/td>\n<\/tr>\n
INDIVIDUALS<\/strong><\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Yet Greece is not alone in fomenting the sovereign debt crisis confronting Europe. Portugal, Italy, Greece, and Spain are currently the nations most in danger of defaulting on their sovereign debts. Collectively these nations have become known as the PIGS for their government’s largish appetite for debt. Yet there are many other nations in both the European Union and eurozone whose fiscal picture is also not rosy.<\/span><\/p>\n

In fact, total debt in the eurozone is projected by the International Monetary Fund to be \u20ac8,364 billion at the end of 2011 and \u20ac8,714 billion at the end of 2012. These debt figures compare to total eurozone projected GDP of \u20ac9,447 billion in 2011 and \u20ac9,687 billion in 2012. Assuming those figures are roughly accurate, then the eurozone taken as a whole is expected to have total sovereign debt to GDP of 88.5% in 2011 and 90.0% in 2012.<\/span><\/p>\n

The Maastricht Treaty requires eurozone nations to have no more than 60% of total sovereign debt to GDP on an ongoing basis. However, special exceptions do apply in the event of an economic emergency.<\/span><\/p>\n

A previous piece in this series, \u201cStatistics Germane to the European Sovereign Debt Crisis<\/a>,\u201d provided a detailed overview of key figures in the crisis. This installment will provide an overview of the key players \u2014 from institutions to individual personalities \u2014 who are struggling to address the crisis.<\/span><\/p>\n

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<\/a><\/span><\/p>\n

Key Players<\/span><\/h2>\n

 <\/p>\n

European Union<\/strong><\/span><\/p>\n

Established by the Maastricht Treaty<\/a> on 7 February 1992, the European Union has 27 individual states that have each agreed to economic and political union. Important for the resolution of the European sovereign debt crisis, decisions are made by a two-tiered system that makes decision making more opaque.<\/span><\/p>\n

Members of the European Union<\/span><\/h4>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Austria (EZ)<\/span><\/td>\nBelgium (EZ)<\/span><\/td>\n<\/tr>\n
Bulgaria (O)<\/span><\/td>\nCyprus (EZ)<\/span><\/td>\n<\/tr>\n
Czech Republic (O)<\/span><\/td>\nDenmark (X)<\/span><\/td>\n<\/tr>\n
Estonia (EZ)<\/span><\/td>\nFinland (EZ)<\/span><\/td>\n<\/tr>\n
France (EZ)<\/span><\/td>\nGermany (EZ)<\/span><\/td>\n<\/tr>\n
Greece (EZ)<\/span><\/td>\nHungary (O)<\/span><\/td>\n<\/tr>\n
Ireland (EZ)<\/span><\/td>\nItaly (EZ)<\/span><\/td>\n<\/tr>\n
Latvia (O)<\/span><\/td>\nLithuania (O)<\/span><\/td>\n<\/tr>\n
Luxembourg (EZ)<\/span><\/td>\nMalta (EZ)<\/span><\/td>\n<\/tr>\n
Netherlands (EZ)<\/span><\/td>\nPoland (O)<\/span><\/td>\n<\/tr>\n
Portugal (EZ)<\/span><\/td>\nRomania (O)<\/span><\/td>\n<\/tr>\n
Slovak Republic (EZ)<\/span><\/td>\nSlovenia (EZ)<\/span><\/td>\n<\/tr>\n
Spain (EZ)<\/span><\/td>\nSweden (X)<\/span><\/td>\n<\/tr>\n
United Kingdom (X)<\/span><\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

EZ<\/strong> = members of the eurozone. O<\/strong> = countries obligated under treaty to eventually join the eurozone. X<\/strong> = countries exempted from joining the eurozone.<\/span><\/p>\n

 <\/p>\n

Of the eurozone nations, 12 of the 17 have debt to GDP levels above 60%, while 14 of the 27 wider EU nations have debt to GDP in excess of 60%. In fact, the largest nations (by GDP) in the EU have some of the highest debt levels. According to the International Monetary Fund<\/a>, debt levels at the end of 2011 are projected as follows:<\/span><\/p>\n