What will happen if Italy and Spain lose the confidence of markets and get near bankruptcy?
What will happen if countries as significant as Italy and Spain completely lose the confidence of markets and get near bankruptcy.??
Belgium has struggled to implement spending cuts following 18 months without a government but was downgraded to AA from AA+ after S&P said the caretaker government of Yves Leterme lacked a mandate to deal with the crisis.
The Belgian government's capacity to prevent an increase in general government debt, which is considered to be already at high levels, is being constrained by rapid private-sector deleveraging both in Belgium and among many of Belgium's key trading partners
Meeting in Berlin, the finance ministers of Germany, Finland and the Netherlands even hinted at the prospect of an enhanced role for the European Central Bank (ECB) if all other steps to save the euro collapsed. But they again ruled it out as an immediate solution.
There are reports that Spain's new centre-right government might soon apply for aid from both the IMF and the European Union's main bailout fund.
Belgium has struggled to implement spending cuts following 18 months without a government but was downgraded to AA from AA+ after S&P said the caretaker government of Yves Leterme lacked a mandate to deal with the crisis.
The Belgian government's capacity to prevent an increase in general government debt, which is considered to be already at high levels, is being constrained by rapid private-sector deleveraging both in Belgium and among many of Belgium's key trading partners
Meeting in Berlin, the finance ministers of Germany, Finland and the Netherlands even hinted at the prospect of an enhanced role for the European Central Bank (ECB) if all other steps to save the euro collapsed. But they again ruled it out as an immediate solution.
There are reports that Spain's new centre-right government might soon apply for aid from both the IMF and the European Union's main bailout fund.
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