Western Europe faces one of its most challenging years in recent memory in 2011, with pushing through painful austerity measures in the teeth of unrest and likely divisions on handling the euro zone debt crisis.
While almost all western European countries are under some market pressure to rein in deficits, the fringe economies dubbed the PIIGS - Portugal, Italy, Ireland, Greece and Spain - remain most in focus. For Ireland and Greece - forced to seek a bailout from the IMF and European Union - the key question will be whether the tough associated austerity measures prove politically sustainable.
For the others, the question is whether by cutting spending and controlling banking problems they will be able to persuade markets they can do without a bailout. For Europe's richer central core nations, the debate remains how much support is genuinely available and what strings are attached.
For more: Political risks to watch in Western Europe in 2011 - Money control Reuters -
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