Investment - Articles - Next chapter in the Eurozone debt crisis: Italy and Spain


 The ink had barely dried on the second bailout agreement for Greece before markets have become concerned that Spain, and especially Italy, may require some form of financial assistance. The Eurozone summit that agreed a second €109bn bailout for Greece was initially greeted with enthusiasm by markets; it was a significant departure from previous policy decisions by the troika (the EU, ECB and IMF) in that it at last addressed some solvency as well as liquidity concerns and also included private sector involvement. While the measures on their own were not enough to provide sustainable debt relief for Greece, the announcement did represent a change in strategy that was necessary if a permanent solution to the debt crisis in the Eurozone is to be found.

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