The Dubai debt default may create a larger crisis of confidence in heavily indebted economies. That's certainly the fear in European countries like Ireland and Latvia, but perhaps above all, here in Greece.
The Greek stock market tumbled last week, as investors took fright. Public finances are a mess; the government has just announced that the budget deficit is projected to be 12.7 per cent of GDP, which is more than double the previous estimate, and four times more than the theoretical limit set by the European Union.
The Guardian today asks if Greece is the new Iceland.
![[QODLink]](http://english.aljazeera.net/mritems/Images/2012/2/11/2012211114212966734_16.jpg "Yusuf Raza Gilani")
