Pressure Builds on Italy and Spain Over Finances

[alp227]

Source: The New York Times

LONDON — Investors continued to flee Italian and Spanish bonds Tuesday amid renewed concerns about the ability of Rome and Madrid to regain control of their finances in the face of sluggish growth and weakened administrations.

The Italian economy minister, Giulio Tremonti, called a meeting of the country’s financial authorities Tuesday to discuss the recent market turmoil, Reuters reported, citing an unidentified official. The Italian Treasury did not respond to calls seeking comment.

In Madrid, meanwhile, Prime Minister José Luis Rodríguez Zapatero delayed the start of a planned vacation to the southern region of Andalucia. Reuters quoted the secretary of state for communications as saying the prime minister wanted to “more closely monitor the evolution of the economic indicators.”

The lack of investor confidence in both countries is threatening to push their borrowing costs to unsustainable levels and drag the eye of the fiscal storm away from Greece, Portugal and Ireland.

Read more: http://www.nytimes.com/2011/08/03/business/global/pressure-builds-on-italy-and-spain-over-finances.html?pagewanted=all

[cppuddy]

1. France and Germany

are the next to be looked at. Its wonder that the euro is trading higher then the dollar. Also, is this being caused by rating agency's, you know the ones that gave all those AAA ratings to the mortgage backed securities!!!! They should be put out of business.

[Prometheus Bound]

2. Italy to default, Spain may scrape by

Italy to default, Spain may scrape by
August 4, 2011 - 6:24AM

AFP

Italy will likely default but Spain could scrape through, the Centre for Economics and Business Research said on Thursday as the eurozone debt crisis threatened to engulf the two eurozone countries.

The CEBR said it had modelled good and bad scenarios for the two countries and Italy could not support its debt even if rates fall back unless the eurozone's third-largest economy sharply increases growth.

"Realistically, Italy is bound to default, but Spain may just get away without having to do so," said the London-based consultancy.
More: http://news.smh.com.au/breaking-news-business/italy-to-default-spain-may-scrape-by-20110804-1ic7p.html