Friday 11 December 2009

Eurozone slipping into insolvency

The European Empire's eurozone may have officially come out of recession relatively early but at what price?

Greece has borrowed so much money to spend its way out of the recession that Greek national debt next year is expected to hit 125% of GDP.  Spanish national debt is predicted to reach 67% of GDP next year.  Both Greece and Spain have had their credit rating downgraded by international ratings agencies.  Spain has been downgraded from "Stable" to "Negative".

We have yet to see what the impact of Gordon Brown's scorched earth pre-election budget will be on the UK's credit rating but despite Liebour's economic incompetence keeping us in deep recession after the rest of the developed world has come out of it, we are still in a better position than most of Europe.

With Greece and Spain insolvent and international confidence in their ability to pay disappearing, how many other eurozone countries will be taken down thanks to the negative effects on their mickey mouse currency?


Anonymous said...

Albania is about to be admitted, apparently it's Europe's fastest growing economy. Growth from 0% to 5% is pretty fast, but would you wish to be encumbered with such an economy's enormous problems?