Eurozone crisis/Addendum

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This addendum is a continuation of the article Eurozone crisis.

The financial status of the PIIGS countries

Portugal Ireland   Italy    Greece    Spain  
Public debt. 2010 (per cent GDP)[1] 83.1 99.4 118.4 130.2 63.5
Primary budget deficit, 2010 (per cent GDP)[1] 4.1 29.3 0.8 2.2 7.3
CDS spread, November 2010 (basis points)[2] 510 595 1000 312
S&P credit rating, July 2010 [3] A- AA A+ BB+ AA

The bail-out clauses

The protocol of the Maastricht Treaty on economic and social cohesion[1] contains the following clauses Article 104b

1. The Community shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project. A Member State shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law or public undertakings of another Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project.

Article 103a

1. Without prejudice to any other procedures provided for in this Treaty, the Council may, acting unanimously on a proposal from the Commission, decide upon the measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of certain products.

2. Where a Member State is in difficulties or is seriously threatened with severe difficulties caused by exceptional occurrences beyond its control, the Council may, acting unanimously on a proposal from the Commission, grant, under certain conditions, Community financial assistance to the Member State concerned. Where the severe difficulties are caused by natural disasters, the Council shall act by qualified majority. The President of the Council shall inform the European Parliament of the decision taken.