Public Debt, Protests Made Economic News in 2011

29 December 2011

This is the VOA Special English Economics Report.

This week, we look back on a few of the big economic stories of twenty eleven.

The debt crisis in that started last year in Greece and Ireland spread to other European countries.

Portugal required a financial rescue of over one hundred billion dollars earlier this year. And Italian Prime Minister Silvio Berlusconi lost political support because of his country’s debt troubles. Former EU official Mario Monti took over as Italy’s prime minister in November.

Greek debt continued to hurt European banks. There is great pressure on Europe’s financial system from debt problems in countries that use the euro. This has created questions about the future of the euro itself. As a result, European finance officials have called for tighter financial cooperation and new rules.

But European leaders have yet to agree on expanding the rescue fund meant for debt-troubled euro-area economies.

World Bank President Robert Zoellick say Europe will have to find answers to its debt problems.

ROBERT ZOELLICK: "Europe has to rescue Europe, OK? And it's very important. If there's any message when I'm asked, 'Well, what can the U.S. do and what can China do?' The best thing they can do is clean up their act at home, be a source of growth at home."