Eurozone Budgets Under Stress

Greece has the biggest debt of the Eurozone countries-the countries that use the Euro for their currency.Prime Minister George Papandreou announced sweeping structural reforms earlier this week,saying that Greece is sinking under its debts.The country is in its worst financial dislocation since it returned to democracy 35 years ago.
Mr.Papandreou called for national unity in the face of the crisis.Greece's soaring defense budget will be targeted for reduction,but there is a real prospect of strikes.Greek leftists and trade unions have indicated that they won't tolerate any cuts.
Ireland and Spain also face a high debt load.While Greece's budget deficit for 2009 is forecast to be 12.7% of Gross Domestic Product,Ireland's is expected to be 12.5%,and Spain's 11.2% of GDP respectively.European Union budget rules set a limit of 3% of GDP.The deficits came about when the countries propped up their economies with borrowing when the financial crisis reached Europe.