Storm looming in eurozone as Spain economy falters
2012 07 27

From: PressTV.ir



Spain’s worsening economic crisis and fears that the cash-strapped country might need a bailout that the eurozone can barely afford have caused a violent economic storm in European financial markets.


Fears soared high after the interest rate on Spain’s debt bonds climbed to a record high of 7.39 on Monday causing the euro to take a nosedive versus the US dollar and China’s Yuan, a recent report by Radio France Internationale (RFI) said.

While every euro was dealt for USD 1.20, most financial and economic experts in Europe expect further fall in euro-dollar parity during the coming weeks.

Meanwhile, on Monday Moody’s Investors Service changed the outlook for the ratings of Germany, Luxembourg, and the Netherlands to negative from stable, citing the uncertainty about the eurozone’s ongoing debt crisis. If fears over the eurozone financial crisis continue to rise over the next months, Germany’s AAA-ratings as Europe’s number one economy will be lowered.

The recent development comes as financial markets believe Spain’s economic woes go far beyond the country’s ailing banks that have been grappling with major economic problems.



Global investors say the single currency area’s economic situation will remain critical considering the amount of the Spanish government’s debt, which demands capabilities beyond the current European mechanisms for assisting the eurozone member states, Greece’s worsening economic crisis and its possible exit from the 17-nation bloc, and also Italy’s falling economy. As a result, many analyst wonder whether Spain can be still considered a financially creditable state.

The bitter fact to admit is that Spain is experiencing a seriously critical economic situation with all its macroeconomic indicators having crossed the red line. Moreover, the country’s economic growth has been negative during the past nine months.


[...]


Read the full article at: presstv.ir







Related Articles
A new stage in the euro crisis
The eurozone’s religious faultline
Government by the Banks, for the Banks: The ESM Coup D’Etat in Europe
The Gang of Four: Presidents propose power of eurozone authorities over national governments


Latest News from our Front Page

CIA torture is reason for France to exit NATO – Le Pen
2014-12-17 20:20
The shocking revelations of CIA torture techniques give France a reason to exit NATO, National Front party leader Marine Le Pen said on Saturday. The report on the CIA’s former interrogation practices has drawn wide criticism since its release. “If indeed everyone is outraged by the tortures used by the US then, let’s leave NATO,” Le Pen said during an interview ...
900 Documented Examples of Obama's Lawbreaking, Lying, Corruption, Cronyism, Hypocrisy & Waste
2014-12-17 20:00
Editor's Note: Our friend, Dan from Squirrel Hill, has updated his list to 900 documented examples of Barack Obama¡¯s lying, lawbreaking, corruption, cronyism, etc. He began with 252 examples, then quickly grew to 504 and later to 694. Recently, he added more than 200 more examples of the usurper-in-chief¡¯s unlawful acts. Every President, every politician, and every human being tells lies ...
A Step Closer to the Mysterious Origin of the Viking Sword Ulfberht
2014 12 16
The universe is full of mysteries that challenge our current knowledge. In "Beyond Science" Epoch Times collects stories about these strange phenomena to stimulate the imagination and open up previously undreamed of possibilities. Are they true? You decide. Ulfberht was like a Medieval luxury brand for swords—but unlike your Gucci purse, the swords were of such high quality they were almost ...
Israel proposes natural gas pipeline to Southern Europe
2014-12-16 12:39
Israel is pushing for the European Union (EU) to approve the construction of a pipeline running from the Middle Eastern country to supply Cyprus, Greece and Italy with natural gas. The proposed EastMed pipeline will carry gas from the Tamar and Leviathan gas fields located in the Mediterranean Sea, to Southern Europe. As the Times of Israel reported in an ...
As Robots Grow Smarter, American Workers Struggle to Keep Up
2014 12 16
A machine that administers sedatives recently began treating patients at a Seattle hospital. At a Silicon Valley hotel, a bellhop robot delivers items to people’s rooms. Last spring, a software algorithm wrote a breaking news article about an earthquake that The Los Angeles Times published. Although fears that technology will displace jobs are at least as old as the Luddites, there ...
More News »