EU debt crisis could widen: IMF

Rick Moran
They're rioting in Greece again. Not that this is news, it just points up the continuing crisis in Europe that the central bank keeps desperately trying to sweep under the rug.

Reuters:


Despite bailouts for Greece, Ireland and Portugal, Europe's debt crisis could still spread to core euro zone countries and the emerging economies of eastern Europe, the International Monetary Fund warned on Thursday.The IMF said it stood ready to provide more aid to Greece if requested, though the country that triggered the sovereign debt crisis in 2009 still had plenty of untapped options for raising extra cash itself through privatizations.

Government sources in Athens meanwhile said international inspectors checking on Greece's compliance with its EU/IMF rescue package had found problems and were pressing for deeper spending cuts to cover a revenue shortfall.

"Contagion to the core euro area, and then onwards to emerging Europe, remains a tangible downside risk," the global lender's latest economic report on Europe said.

Finance ministers of the 17-nation single currency area are set to approve a 78 billion euro rescue plan for Portugal next Monday after Finland's prime minister-in-waiting clinched a deal to ensure parliamentary approval of the package.

Spain is teetering, while the debt to GNP ratio of core nations line Great Britain keeps getting worse. This is a slow motion catastrophe that will play out over the next few years with Greece and Ireland eventually becoming economic wards of the rest of Europe.

The EU may survive in some form - it must or the entire continent faces economic Armageddon. But it won't be recognizable and it will probably be a much weaker entity than it is now.



They're rioting in Greece again. Not that this is news, it just points up the continuing crisis in Europe that the central bank keeps desperately trying to sweep under the rug.

Reuters:


Despite bailouts for Greece, Ireland and Portugal, Europe's debt crisis could still spread to core euro zone countries and the emerging economies of eastern Europe, the International Monetary Fund warned on Thursday.

The IMF said it stood ready to provide more aid to Greece if requested, though the country that triggered the sovereign debt crisis in 2009 still had plenty of untapped options for raising extra cash itself through privatizations.

Government sources in Athens meanwhile said international inspectors checking on Greece's compliance with its EU/IMF rescue package had found problems and were pressing for deeper spending cuts to cover a revenue shortfall.

"Contagion to the core euro area, and then onwards to emerging Europe, remains a tangible downside risk," the global lender's latest economic report on Europe said.

Finance ministers of the 17-nation single currency area are set to approve a 78 billion euro rescue plan for Portugal next Monday after Finland's prime minister-in-waiting clinched a deal to ensure parliamentary approval of the package.

Spain is teetering, while the debt to GNP ratio of core nations line Great Britain keeps getting worse. This is a slow motion catastrophe that will play out over the next few years with Greece and Ireland eventually becoming economic wards of the rest of Europe.

The EU may survive in some form - it must or the entire continent faces economic Armageddon. But it won't be recognizable and it will probably be a much weaker entity than it is now.