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After a decade of overspending, Greece has fallen into a debt crisis. The country--which along with Portugal, Ireland, Italy and Spain is a member of the so-called PIIGS group of troubled European economies--is carrying a deficit close to 13% of GDP, more than four times the E.U. limit. Part of the blame for Greece's economic woes has been placed on padded public-sector wages and rampant tax evasion. Proposed austerity measures, which include a pay freeze for government employees, prompted thousands to go on strike. European leaders, who fear that Greece's troubles will trigger widespread...

Author: /time Magazine | Title: The World | 2/22/2010 | See Source »

...doubts could drive the value of Greek bonds to junk status, confounding outside efforts to bail Athens out and forcing Greece to simply abandon the euro before it drags the currency down to nothing. "Once that happens, markets then turn successively on indebted countries like Spain, Portugal, Italy and Ireland until they're driven out as well," Hancké explains. "At that point, even if a core of countries continue using the euro after so many others have left, the currency will have lost it's main original function as being the means by which greater European integration and common...

Author: /time Magazine | Title: Could the Euro's Days Be Numbered? | 2/19/2010 | See Source »

...reform at the heart of his austerity plan, and says his government is serious about fixing the roots of his country's current economic predicament. He says Greece will tackle its deficit without the deep government-wage or job cuts that other heavily indebted European countries, like Ireland, Spain and Portugal, have recently announced. Instead, Athens will pursue tax evaders. "Greece's problems," Papandreou told journalists at a press conference marking his first 100 days in office, "are due to waste, corruption and lack of respect towards...

Author: /time Magazine | Title: Taxing Times in Greece | 2/15/2010 | See Source »

...Supreme Court prohibited the federal trial regarding Proposition 8, California's ban on same-sex marriage, from being filmed or broadcast on YouTube. But actor John Ainsworth and filmmaker John Ireland found a loophole. The duo, legally married to their respective husbands, found a mock courtroom at the University of Southern California, hired a group of actors and began re-enacting the proceedings on the basis of courtroom transcripts and firsthand accounts from journalists present at the trial. The episodes began airing online...

Author: /time Magazine | Title: The World | 2/15/2010 | See Source »

...result of sovereign-debt panic. Greece, which is perhaps the weakest link in the European Union, was first to hit the wall on news that its deficit has ballooned to nearly 13% of GDP. Then last week, worry about debt default spread from Greece to Spain, Portugal and Ireland, where spending is similarly out of control. (See the best business deals...

Author: /time Magazine | Title: The Carry Trade: Betting on Bad Currencies | 2/11/2010 | See Source »

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