The Greek Tragedy

THE GREEK TRAGEDY A LOOK AT GREECE'S ECONOMIC CRISIS Less than half of the population is in the labour force 47% More than one third of the youth 36% labour force is unemployed Estimated size of the 25% unreported economy The government spends nearly half of its budget on social benefits 42% They spend € 10,600 per person They earn € 8,300 per person in taxes Leaves a € 2,300 deficit per person Rising Debt ... The Greeks' reliance on social assistance and rampant tax evasion have meant an unrelenting rise in their country's sovereign debt (mostly funded by European foreign investors). € BILLIONS GREECE'S FINANCES FOREIGN EXPOSURE TO GREECE 350 300 43.1 FRANCE 250 25.8 GERMANY 200 10.7 UNITED KINGDOM 150 7.8 PORTUGAL 100 5.6 UNITED STATES 50 3.8 NETHERLANDS 3.1 ITALY 2007 2008 2009 2010 2.6 AUSTRIA PUBLIC DEBT GOVERNMENT REVENUE GOVERNMENT SPENDING Will the Greek Debt Crisis Shake the Euro? Some of Europe's largest banks are heavily exposed to Greek sovereign debt. A Greek default could topple these institutions and spread contagion through the European banking system and the eurozone. IMF and EU estimate Greece may need Greece receives a €14.5 billion loan from the EU and IMF inspectors give Greece the green light for a fresh € 9 billion loan another €100 billion EU to repay immediate debt to meet obligations EUR/USD may/10 aug/10 june/11 1.60 1.50 1.40 1.30 dec/09 july/11 Fitch downgrades Greece's credit rating EU releases a €12 billion loan to 1.20 meet immediate oct/10 jan/11 requirements Rates courtesy of OANDA fxTrade"M Greece submits a draft budget pledging to cut the 2011 deficit Fitch joins S&P and Moody's to reduce Greek debt to junk status OANDA OANDA is an online provider of foreign exchange trading and currency information services. © 1996 - 2011 OANDA Corporation. All rights reserved. "0ANDA", "fxTrade" and OANDA's "fx" family of trade marks are owned by OANDA Corporation. Data sources: Bank of International Settlement, Eurostat, OANDA fxTradeM THE GREEK TRAGEDY A LOOK AT GREECE'S ECONOMIC CRISIS Less than half of the population is in the labour force 47% More than one third of the youth 36% labour force is unemployed Estimated size of the 25% unreported economy The government spends nearly half of its budget on social benefits 42% They spend € 10,600 per person They earn € 8,300 per person in taxes Leaves a € 2,300 deficit per person Rising Debt ... The Greeks' reliance on social assistance and rampant tax evasion have meant an unrelenting rise in their country's sovereign debt (mostly funded by European foreign investors). € BILLIONS GREECE'S FINANCES FOREIGN EXPOSURE TO GREECE 350 300 43.1 FRANCE 250 25.8 GERMANY 200 10.7 UNITED KINGDOM 150 7.8 PORTUGAL 100 5.6 UNITED STATES 50 3.8 NETHERLANDS 3.1 ITALY 2007 2008 2009 2010 2.6 AUSTRIA PUBLIC DEBT GOVERNMENT REVENUE GOVERNMENT SPENDING Will the Greek Debt Crisis Shake the Euro? Some of Europe's largest banks are heavily exposed to Greek sovereign debt. A Greek default could topple these institutions and spread contagion through the European banking system and the eurozone. IMF and EU estimate Greece may need Greece receives a €14.5 billion loan from the EU and IMF inspectors give Greece the green light for a fresh € 9 billion loan another €100 billion EU to repay immediate debt to meet obligations EUR/USD may/10 aug/10 june/11 1.60 1.50 1.40 1.30 dec/09 july/11 Fitch downgrades Greece's credit rating EU releases a €12 billion loan to 1.20 meet immediate oct/10 jan/11 requirements Rates courtesy of OANDA fxTrade"M Greece submits a draft budget pledging to cut the 2011 deficit Fitch joins S&P and Moody's to reduce Greek debt to junk status OANDA OANDA is an online provider of foreign exchange trading and currency information services. © 1996 - 2011 OANDA Corporation. All rights reserved. "0ANDA", "fxTrade" and OANDA's "fx" family of trade marks are owned by OANDA Corporation. Data sources: Bank of International Settlement, Eurostat, OANDA fxTradeM THE GREEK TRAGEDY A LOOK AT GREECE'S ECONOMIC CRISIS Less than half of the population is in the labour force 47% More than one third of the youth 36% labour force is unemployed Estimated size of the 25% unreported economy The government spends nearly half of its budget on social benefits 42% They spend € 10,600 per person They earn € 8,300 per person in taxes Leaves a € 2,300 deficit per person Rising Debt ... The Greeks' reliance on social assistance and rampant tax evasion have meant an unrelenting rise in their country's sovereign debt (mostly funded by European foreign investors). € BILLIONS GREECE'S FINANCES FOREIGN EXPOSURE TO GREECE 350 300 43.1 FRANCE 250 25.8 GERMANY 200 10.7 UNITED KINGDOM 150 7.8 PORTUGAL 100 5.6 UNITED STATES 50 3.8 NETHERLANDS 3.1 ITALY 2007 2008 2009 2010 2.6 AUSTRIA PUBLIC DEBT GOVERNMENT REVENUE GOVERNMENT SPENDING Will the Greek Debt Crisis Shake the Euro? Some of Europe's largest banks are heavily exposed to Greek sovereign debt. A Greek default could topple these institutions and spread contagion through the European banking system and the eurozone. IMF and EU estimate Greece may need Greece receives a €14.5 billion loan from the EU and IMF inspectors give Greece the green light for a fresh € 9 billion loan another €100 billion EU to repay immediate debt to meet obligations EUR/USD may/10 aug/10 june/11 1.60 1.50 1.40 1.30 dec/09 july/11 Fitch downgrades Greece's credit rating EU releases a €12 billion loan to 1.20 meet immediate oct/10 jan/11 requirements Rates courtesy of OANDA fxTrade"M Greece submits a draft budget pledging to cut the 2011 deficit Fitch joins S&P and Moody's to reduce Greek debt to junk status OANDA OANDA is an online provider of foreign exchange trading and currency information services. © 1996 - 2011 OANDA Corporation. All rights reserved. "0ANDA", "fxTrade" and OANDA's "fx" family of trade marks are owned by OANDA Corporation. Data sources: Bank of International Settlement, Eurostat, OANDA fxTradeM THE GREEK TRAGEDY A LOOK AT GREECE'S ECONOMIC CRISIS Less than half of the population is in the labour force 47% More than one third of the youth 36% labour force is unemployed Estimated size of the 25% unreported economy The government spends nearly half of its budget on social benefits 42% They spend € 10,600 per person They earn € 8,300 per person in taxes Leaves a € 2,300 deficit per person Rising Debt ... The Greeks' reliance on social assistance and rampant tax evasion have meant an unrelenting rise in their country's sovereign debt (mostly funded by European foreign investors). € BILLIONS GREECE'S FINANCES FOREIGN EXPOSURE TO GREECE 350 300 43.1 FRANCE 250 25.8 GERMANY 200 10.7 UNITED KINGDOM 150 7.8 PORTUGAL 100 5.6 UNITED STATES 50 3.8 NETHERLANDS 3.1 ITALY 2007 2008 2009 2010 2.6 AUSTRIA PUBLIC DEBT GOVERNMENT REVENUE GOVERNMENT SPENDING Will the Greek Debt Crisis Shake the Euro? Some of Europe's largest banks are heavily exposed to Greek sovereign debt. A Greek default could topple these institutions and spread contagion through the European banking system and the eurozone. IMF and EU estimate Greece may need Greece receives a €14.5 billion loan from the EU and IMF inspectors give Greece the green light for a fresh € 9 billion loan another €100 billion EU to repay immediate debt to meet obligations EUR/USD may/10 aug/10 june/11 1.60 1.50 1.40 1.30 dec/09 july/11 Fitch downgrades Greece's credit rating EU releases a €12 billion loan to 1.20 meet immediate oct/10 jan/11 requirements Rates courtesy of OANDA fxTrade"M Greece submits a draft budget pledging to cut the 2011 deficit Fitch joins S&P and Moody's to reduce Greek debt to junk status OANDA OANDA is an online provider of foreign exchange trading and currency information services. © 1996 - 2011 OANDA Corporation. All rights reserved. "0ANDA", "fxTrade" and OANDA's "fx" family of trade marks are owned by OANDA Corporation. Data sources: Bank of International Settlement, Eurostat, OANDA fxTradeM THE GREEK TRAGEDY A LOOK AT GREECE'S ECONOMIC CRISIS Less than half of the population is in the labour force 47% More than one third of the youth 36% labour force is unemployed Estimated size of the 25% unreported economy The government spends nearly half of its budget on social benefits 42% They spend € 10,600 per person They earn € 8,300 per person in taxes Leaves a € 2,300 deficit per person Rising Debt ... The Greeks' reliance on social assistance and rampant tax evasion have meant an unrelenting rise in their country's sovereign debt (mostly funded by European foreign investors). € BILLIONS GREECE'S FINANCES FOREIGN EXPOSURE TO GREECE 350 300 43.1 FRANCE 250 25.8 GERMANY 200 10.7 UNITED KINGDOM 150 7.8 PORTUGAL 100 5.6 UNITED STATES 50 3.8 NETHERLANDS 3.1 ITALY 2007 2008 2009 2010 2.6 AUSTRIA PUBLIC DEBT GOVERNMENT REVENUE GOVERNMENT SPENDING Will the Greek Debt Crisis Shake the Euro? Some of Europe's largest banks are heavily exposed to Greek sovereign debt. A Greek default could topple these institutions and spread contagion through the European banking system and the eurozone. IMF and EU estimate Greece may need Greece receives a €14.5 billion loan from the EU and IMF inspectors give Greece the green light for a fresh € 9 billion loan another €100 billion EU to repay immediate debt to meet obligations EUR/USD may/10 aug/10 june/11 1.60 1.50 1.40 1.30 dec/09 july/11 Fitch downgrades Greece's credit rating EU releases a €12 billion loan to 1.20 meet immediate oct/10 jan/11 requirements Rates courtesy of OANDA fxTrade"M Greece submits a draft budget pledging to cut the 2011 deficit Fitch joins S&P and Moody's to reduce Greek debt to junk status OANDA OANDA is an online provider of foreign exchange trading and currency information services. © 1996 - 2011 OANDA Corporation. All rights reserved. "0ANDA", "fxTrade" and OANDA's "fx" family of trade marks are owned by OANDA Corporation. Data sources: Bank of International Settlement, Eurostat, OANDA fxTradeM THE GREEK TRAGEDY A LOOK AT GREECE'S ECONOMIC CRISIS Less than half of the population is in the labour force 47% More than one third of the youth 36% labour force is unemployed Estimated size of the 25% unreported economy The government spends nearly half of its budget on social benefits 42% They spend € 10,600 per person They earn € 8,300 per person in taxes Leaves a € 2,300 deficit per person Rising Debt ... The Greeks' reliance on social assistance and rampant tax evasion have meant an unrelenting rise in their country's sovereign debt (mostly funded by European foreign investors). € BILLIONS GREECE'S FINANCES FOREIGN EXPOSURE TO GREECE 350 300 43.1 FRANCE 250 25.8 GERMANY 200 10.7 UNITED KINGDOM 150 7.8 PORTUGAL 100 5.6 UNITED STATES 50 3.8 NETHERLANDS 3.1 ITALY 2007 2008 2009 2010 2.6 AUSTRIA PUBLIC DEBT GOVERNMENT REVENUE GOVERNMENT SPENDING Will the Greek Debt Crisis Shake the Euro? Some of Europe's largest banks are heavily exposed to Greek sovereign debt. A Greek default could topple these institutions and spread contagion through the European banking system and the eurozone. IMF and EU estimate Greece may need Greece receives a €14.5 billion loan from the EU and IMF inspectors give Greece the green light for a fresh € 9 billion loan another €100 billion EU to repay immediate debt to meet obligations EUR/USD may/10 aug/10 june/11 1.60 1.50 1.40 1.30 dec/09 july/11 Fitch downgrades Greece's credit rating EU releases a €12 billion loan to 1.20 meet immediate oct/10 jan/11 requirements Rates courtesy of OANDA fxTrade"M Greece submits a draft budget pledging to cut the 2011 deficit Fitch joins S&P and Moody's to reduce Greek debt to junk status OANDA OANDA is an online provider of foreign exchange trading and currency information services. © 1996 - 2011 OANDA Corporation. All rights reserved. "0ANDA", "fxTrade" and OANDA's "fx" family of trade marks are owned by OANDA Corporation. Data sources: Bank of International Settlement, Eurostat, OANDA fxTradeM