The presentation will touch upon the current pace of economic activity, inflation and the interest rate environment both in advanced and emerging economies. Recent political and economic developments will be put in context and their implications for the world economy will be assessed. From the current developments and trends the presentation will lead to SwissRe's economic outlook and the surrounding risks. The European debt crisis, which will likely still be a major risk, will be treated in more detail. Key for understanding the crisis and its dynamics is an understanding of the underlying self-reinforcing links between sovereigns, banks and the economy. The presentation will show how these links work and how they have been affected by most recent policy measures. The session will end with an assessment of the impacts and implications of the economic situation and outlook for the re/insurance industry.