The state of the euro zone
The debt crisis in the 17-country currency union continues to escalate as financial woes spread from small nations
like Greece, Portugal and Ireland to Italy and Spain, the zone's third- and fourth-largest economies.
Size of economy
GDP in U.S. dollars, 2011 forecast

Government debt
Percentage of GDP, as of Q1 2011

Struggling
the most
Italy has been deeply indebted for years, and recent fighting over the budget has rapidly increased borrowing costs as investors lose confidence in the country’s financial stability.
Borrowing costs have also surged in Spain, and while the country’s debt burden isn’t as pronounced as Italy’s, Spain runs a higher budget deficit.
Greece, Portugal and Ireland have received bailout funds from the IMF and the EU after agreeing to a series of austerity measures.
The rising cost of borrowing
10-year bond yield spreads over benchmark German bonds

SOURCE: European Commission. GRAPHIC: Alicia Parlapiano - The Washington Post. Published July 12, 2011. Updated Aug. 4, 2011.