"Greece is a challenge to Europe" - December 9, 2009
"I do not believe that Greece can go bankrupt," assured Christine Lagarde, on Wednesday morning on radio station RMC. The Economy Minister has however stressed the need for Greece to take measures to consolidate its public finances.
The country's financial difficulties can be summarized in two figures: a deficit estimated at 12.7% of Gross Domestic Product (GDP) and public debt at 113% of GDP by the end of the year and probably 120% 2010. What encourage rating agencies Standard & Poor's and Fitch lowered their ratings on the debt Greek, which discourages the more investors to participate in the refinance market.
Cyril LACHEVRE, Le Figaro Economie, believes that the risk of bankruptcy in Greece is minor, but its financial situation poses a challenge to the European Union. Explanations: