Major EU markets plummeted on Thursday, with the euro sliding against the dollar over uncertainty about the ability of Italy and Portugal to stave off an impending crisis. On the same day, the European Central Bank tried to calm nervous markets by offering more emergency credit.
Meanwhile, in the Eurozone, hopes that the sovereign debt crisis would ease significantly following the steps taken by Eurozone leaders on 21 July to bail out Greece and introduce a number of measures aimed at countering contagion have not been realised. This is partly because the weakening global economic environment has raised concern over the growth outlooks for both Italy and Spain and hence their ability to improve their public finances. This in turn has raised fears that Italy and Spain will eventually need to be bailed out, which is a hugely worrying prospect for the stability of the Eurozone.
Hope for better end. Still waiting...
Meanwhile, in the Eurozone, hopes that the sovereign debt crisis would ease significantly following the steps taken by Eurozone leaders on 21 July to bail out Greece and introduce a number of measures aimed at countering contagion have not been realised. This is partly because the weakening global economic environment has raised concern over the growth outlooks for both Italy and Spain and hence their ability to improve their public finances. This in turn has raised fears that Italy and Spain will eventually need to be bailed out, which is a hugely worrying prospect for the stability of the Eurozone.
Hope for better end. Still waiting...
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