The roots of the Euro area
crisis can be traced back to at least the summer of 2007. Although not picked
up by the credit rating agencies until much later then the probability of
default on sovereign debt increased in parallel with clear macroeconomic
misalignments. These misalignments include recession-triggered budget deficits,
bailout-motivated fiscal measures,
as well as country-specific strategies and political risks - i.e. in the case
of Portugal, Italy, Ireland, Greece, and Spain.
In the absence of a major restructuring of debt, sovereign credit risk
adjustment in these countries can only be achieved through economic growth or
an alternative process of financial austerity and/or inflation.
Even at the eleventh hour,
when looked at externally, various measures can still be taken to reduce
sovereign default probability within the Euro zone. In Italy and Spain, for
example, better sovereign credit risk rating might still be restored by the new
government teams in power rais...
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The Sales Managers' Indexescovering all major Asian, African and Latin American emerging markets, plus North America.
World Price IndexPPP exchange rates for the worlds top 10 economies.
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