By Sean O'Grady, Economics Editor
AFP
Students in Rome hold a banner saying 'But What Future' as they protest yesterday over higher education cuts. Some analysts fear Italy's economy is 'too big to save'
ENLARGEThe Republic of Ireland's €85bn (£72bn) bailout has failed to end the crisis of confidence gripping the eurozone, and may even have exacerbated it.
Far from being immunised against the "contagion", other economies are now coming under renewed attack. Most worryingly, since the Irish deal investors have started to dump Italian government debt even as the sell-off of Greek, Irish, Spanish, Belgian and Portuguese securities continues – a broad vote of no confidence from the markets to European Union leaders.
Talk of discounts for bond-holders, for debt issued after 2013, and the sheer unaffordability of some of the rescue deals implemented and in imminent prospect have spooked many. The European Central Bank's president, Jean-Claude Trichet, tried to reassure markets by saying current bond-holders were secure, in line with precedents set by the International Monetary Fund (IMF) in dealing with other sovereign defaults.
No comments:
Post a Comment