| Author (Person) | Milne, Richard, Spiegel, Peter |
|---|---|
| Series Title | Financial Times |
| Series Details | 12.7.11 |
| Publication Date | 12/07/2011 |
| Content Type | News |
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Europe’s debt crisis escalated on 11 July 2011 as Italy and Spain saw their borrowing costs soar by record amounts, hitting bank shares and stock markets globally. Italy, the eurozone’s third-largest economy and home to the continent’s biggest bond market, saw the premium it pays to borrow over German debt rise by more than a quarter to 3%, a euro-era high. Spain’s benchmark borrowing costs rose above 6%, also a euro-era high. The sharp market moves came as a consortium of large European banks with holdings of Greek bonds demanded that the European Union commit itself to a buy-back of the debt, possibly with billions in government money. Without quick action, they warned, countries such as Spain and Italy could be sucked under. Market participants described the day as one of the most dramatic of the 18-month-long crisis and warned that Europe’s current policy would probably be unable to deal with Italy, which has €1,600bn ($2240bn) of outstanding debt, if it becomes fully ensnared. The 17 eurozone members meeting in Brussels said they planned to strengthen their common bailout fund in order to stop the debt crisis from spreading to Italy. The financial markets, however, remained sceptical of Rome's financial health. |
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| Subject Categories | Business and Industry, Economic and Financial Affairs |
| Countries / Regions | Europe, Greece, Italy, Spain |
