Rescuing Greece

The European Council will meet today to discuss, amongst other matters, the perilous state of the Greek public finances. The following from the BBC:

Greece’s deficit is, at 12.7%, more than four times higher than eurozone rules allow. For years Greek spending has ballooned while tax revenue has diminished.

Its debt is about 300bn euros ($419bn; £259bn), and the government estimates it will need to borrow about 53bn euros this year to cover budget shortfalls.

Debt servicing is now costing Greece 11.6% of its gross domestic product and it has to pay more interest on loans now because its credit rating has been downgraded.

As Greece is a member of the Eurozone the potential reprecussions of economic failure may affect all other members.

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