UK Today News: Greece Debt Crisis – Greece’s Debt May Prove to Be Lethal to the European Economy
The costs of pulling Greece out of its financial deficit situation, will prove to be dangerous to the European Economies who attempt to help out with the Greece debt crisis.
Reports say that a day after S&P rated Greece’s debt situation as a Junk Status, premium of investors in the Government Bonds have increased to 14 year high. S&P also felt that Portugal is going through the same status and now fears are that many other indebted countries may undergo it as wel.
The European Central Bank told the countries to ensure that the financial trouble does not turn into a full blown crisis.
The President of the European Union said that he put a summit in the euro zone countries and made it a point that the Greek debt crisis would not resurrect. The European Commission and Greek Official said that the aid to repair Greece would need a refinancing of around €8.5 billion. But many markets are not supporting the opinion of the Aid that is to be provided to Greece, especially Germany, which thinks that Governments don’t have enough political reach and would not be able to sustain he agreement.