Eurozone to run out of credit
THE credit rating of every eurozone country could be downgraded if Greece crashes out of the single currency, rating agency Fitch warned last night.
The move would push up the cost of borrowing across Europe.
An exit for debt-laden Greece is thought increasingly likely as efforts to form a new government after Sunday’s elections continue to stall.
There will have to be fresh elections next month if the deadlock cannot be broken.
Fears that a new poll could be won by political parties ready to rip up the international bailout deal rattled markets yesterday, causing the euro to plunge.
Credit ratings of Eurozone countries at danger
Spain and France came under pressure from the European Commission for even deeper spending cuts.
New French president Francois Hollande said he had known for weeks that public finances were worse than Nicolas Sarkozy’s outgoing government admitted.
The Commission insisted that although Europe’s economy remained fragile, recovery was “in sight”.