While the world breathes a sigh of relief that Moody's didn't join Fitch and S&P in downgrading Greece debt to junk, trouble is brewing elsewhere.

For instance, Latvia's budget situation is reaching crisis levels again.

Latvia's constitutional court Monday struck down pension cuts that form a key plank of an austerity drive, casting doubt on a crucial IMF and EU-led bailout for the recession-hit Baltic state.
The court said the cuts -- in force since July, and clawing back between 10 and 70 percent of a pension depending on an individual's status -- were illegal and parliament must by March 2010 have measures in place to rescind them.

Latvia has already cut its budget to the bone. It's debt levels approach unpayable. The Latvian Prime Minister is threatening Swedish banks.

Meanwhile, far to the south, another crisis is brewing.

The International Monetary Fund has turned down recession-battered Ukraine’s plea for a $2bn emergency loan before the New Year, a senior Ukrainian official said on Wednesday, citing his country’s failure to adopt a fiscally prudent 2010 budget and muster political consensus ahead of a hotly contested presidential election...
Without fresh cash, Ukrainian officials have said they could struggle to cover Russian gas import bills in coming months. The scenario could spark a repeat of last January’s stand-off with Russia that disrupted European supplies.
Government officials have also recently warned that escalation of their country’s financial woes could “spill over” into other regions. European banks hold a 40 per cent market share in Ukraine.

The Ukraine's problems are both political and economic, making solutions especially difficult.

Finally, Ireland's economic crisis has caused it to return to its traditional export - people.

Ireland’s Economic and Social Research Institute cut its 2010 unemployment forecast as emigration increases and the labor force shrinks.
The ESRI sees net outward migration of 40,000 people in the year ending April 2010, the most in more than two decades. A net 7,800 people left in the year through April 2009, statistics office figures show, compared with net inward migration of 38,500 people in the previous 12 months.