Insolvencies In Europe

As Europe is overshadowed by sovereign debt crisis, EU core and peripheral countries seem to be drifting apart. A recent survey by the Creditreform Economic Research Unit attempts to analyse the current situation while EU core countries keep insolvency total in check. Peripheral countries, it seems are those most strongly affected.

The pace of economic growth slowed in 2011, resulting in a year overshadowed by the European debt crisis. In Greece, in particular, the crisis assumed such serious proportions that there was a risk of it spreading to other – basically solvent – national economies. As a result of sustained tension in the financial markets, both financing conditions and business and consumer confidence in Europe deteriorated. Coupled with massive austerity programs, these developments curbed the dynamism of economic activity across Europe. Within Europe, however, growth varied considerably. Some national economies such as Germany, Netherlands and Denmark