The current eurozone debt crisis, while building up over time, was triggered in April 2010 when Eurostat, the Europe Union (EU) statistical authority, revealed that Greece's 2009 budget deficit was €32.3 billion, or 13.6% of its gross domestic product (GDP).
Global markets have since responded to the magnitude of sovereign debt in other eurozone countries as investors question the ability of these countries to repay their debts. Many forecasters question whether Greece’s partial default on its debt and additional funding from the ECB and the IMF of €130 billion is a long-term fix or simply a way to delay the inevitable.
The complexity of the eurozone ecosystem and the political, financial, and cultural drivers that shape it make predicting the outcome of this crisis nearly impossible. Significant operational risks remain for US firms operating in the eurozone.
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PwC's cross-functional experience allows us to identify the key considerations and profound impacts for companies across all areas, including business model, treasury, procurement, IT, finance, HR, and tax. Our high-level diagnostic framework can provide you with the analysis, insight, and roadmap to proactively develop contingency plans and take steps to help minimize the risks today.