Turning to 2012, a lot of countries have seen their levels of public debt rise (note that Greece prior to the bailout reached roughly 120% of public debt in 2011 – it’s now gone down to French levels). Except for Sweden and Norway that fare much better than the rest, one continues to see an possible trade-off between public and private debt. Spain as is known faces particularly problematic levels of private debt (but note also the Netherlands and Denmark).
1) Debt conversion program undertaken – and initially funded – by the ECB;
2) Investment and Internal Imbalances Amelioration Program European Investment Bank (EIB), the European Investment Fund (EIF) and the ECB;
3) Single banking area with a single authority that supervises directly and recapitalises the area’s bank.