IESE Prof. Javier Díaz-Giménez Analyzes Debt Levels of Greece Relative to Other E.U. Countries

Spain has serious liquidity problems


According to the index created by IESE Prof. Javier Díaz-Giménez, Greece's share of debt is 74 percent larger than its GDP - in other words, every Greek citizen would have to pay back almost 20,000 euros to rectify this imbalance. Those E.U. countries carrying the least debt, such as Finland and the Netherlands, are essentially footing the bill for the worst offenders. Though Spain's debt levels are relatively small, the country has serious liquidity problems, which could lead to solvency problems down the line.