Sox First

Shocking news out of Europe with signs that 2010 could be a defining year for the EU with revelations that Greece’s debt is bigger than its economy. Greece’s debt will rise to 124.9% of its GDP next year. Greece’s debt is now 300 billion euros or $450 billion which makes it an absolute cot case. Fitch Ratings has downgraded Greece’s credit rating to BBB plus with a negative outlook from A minus,

The Financial Times reports that Greece’s Prime Minister George Papandreou has pledged to make deep cuts in Greece’s bureaucracy but it’s worth remembering the riots that shook Greece last year.

And with German chancellor Angela Merkel saying the EU has a responsibility for Greece, there is every chance of massive trouble in Greece next year spreading through the European Union.

Greece and the EU will need to be monitored.

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