European Sovereign Debt Crisis
From late 2009, fears of a sovereign debt crisis developed among fiscally conservative investors concerning some European states, with the situation becoming particularly tense in early 2010. This included euro zone members Greece, Ireland and Portugal and also some EU countries outside the area. Iceland, the country which experienced the largest crisis in 2008 when its entire international banking system collapsed has emerged less affected by the sovereign debt crisis as the government refused to bail the banks out, and has begun to prosecute those involved in the collapse.
In the EU, especially in countries where sovereign debts have increased sharply due to bank bailouts, a crisis of confidence has emerged with the widening of bond yield spreads and risk insurance on credit default swaps between these countries and other EU members, most importantly Germany. To be included in the eurozone, the countries had to fulfill certain convergence criteria, but the meaningfulness of such criteria were diminished by the fact they have not been applied to different countries with the same strictness.
Read more about this topic: European Central Bank
Famous quotes containing the words european, sovereign, debt and/or crisis:
“To the cry of “follow Mormons and prairie dogs and find good land,” Civil War veterans flocked into Nebraska, joining a vast stampede of unemployed workers, tenant farmers, and European immigrants.”
—For the State of Nebraska, U.S. public relief program (1935-1943)
“Alien. An American sovereign in his probationary state.”
—Ambrose Bierce (1842–1914)
“The debt was the most sacred obligation incurred during the war. It was by no means the largest in amount. We do not haggle with those who lent us money. We should not with those who gave health and blood and life. If doors are opened to fraud, contrive to close them. But don’t deny the obligation, or scold at its performance.”
—Rutherford Birchard Hayes (1822–1893)
“... what’s been building since the 1980’s is a new kind of social Darwinism that blames poverty and crime and the crisis of our youth on a breakdown of the family. That’s what will last after this flurry on family values.”
—Stephanie Coontz (b. 1944)