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Europe’s public debt: Analyzing the fear factor
Public debt levels are at an all-time high – in Europe the problem is particularly acute. The lessons from the Greek debt crisis seem not to have been learned, as Italy alone carries debt that is three times larger than the European Union’s emergency fund. Some economists now argue such immense liabilities are “not catastrophic,” but the real question lies in how frightened investors are that a country might default, and what they do next.