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With a public and private debt at around 260% of GDP (Greek private debt is relatively low at an average of 110% compared to other old-EU countries), and a spread of 200 basis points, you have to pay a surcharge around 5% of your GDP compared to Germany.
I am reminded of this table from 2009 - it may have been Jerome to post it in an open thread. Anyway, here it goes:

Think about those numbers and the facts that 1) debt is used to prop up growth rates; 2) when the private sector retrenches, the public sector funds the shortfall with its deficit. Clearly no sensible monetary union can be built on constraining public debt but not private debt as long as the private sector enjoys an implicit guarantee from the public sector.

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Tue Jun 7th, 2011 at 03:56:45 AM EST
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These data by McKinsey on Economist I had on mind when I've claimed "relatively low" about Greek total debt (Gremany 286%, UK 466%, France 322%, Italy 315%, year 2009). These include debt of financial institutions. But I have to check if the Greek data are comparable with Jerome's or Economist's (McKinsey) data and I will come back.

"Eurozone leaders have turned a 50bn Greek solvency problem into a 1,000bn existential crisis for the European Union." David Miliband
by Kostis Papadimitriou on Tue Jun 7th, 2011 at 11:42:02 AM EST
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