The current eurozone debt crisis 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 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. Read more in this FS Viewpoint.