The Daily Telegraph: It seems that even when the EU and IMP bailouts are finally repaid by the EU states (which is in the ‘never’ category according to analysts) which had to take them up, or face bankruptcy which in turn would have destroyed the Eurozone, the bailout countries may find it impossible to borrow ever again.
The reason for that is because the international community has lost faith in the ability of the European countries, in particular the PIGS bloc countries (Portugal, Ireland, Greece, Spain) governments, to manage without additional bailouts for those who have got them already and new ones for those who will certainly apply for them (eg., Spain).
For example, although Greece was bailed out for EUR 110bn last year already, its Prime Minister, Mr. Papandreou, still has no sound economy stimulation plans at hand, although in accordance with the terms of the bailout Greece must raise EUR 50bn by 2015 instead of piling on new debts. Although he said that the government plans to sell its shares in public companies, including the main telecommunications operator OTE and utility company PPC, no specific time frames were mentioned and therefore the government’s plans are still unclear.
- Spain teeters with bailout tag of around EUR 420 Billion, but EU upbeat that Eurozone is now safe (dominicatimes.wordpress.com)
- IMF clashes with Osborne over refusal to back eurozone bailout (guardian.co.uk)
- Ten reasons why Britain shouldn’t join the Portuguese bailout (blogs.telegraph.co.uk)
- EU debt costs rise after Ireland downgrade, Greek delays (telegraph.co.uk)
- Kenny Says Ireland Will Not Default as Greece Concerns Mount (businessweek.com)
- Euro Falls After Moody’s Further Downgrades Ireland (huffingtonpost.com)
- Europe’s debt crisis haunts markets again (seattletimes.nwsource.com)
- One step from junk (ftalphaville.ft.com)
- Moody’s Cuts Ireland’s Debt Rating Closer to Junk (nytimes.com)
- UPDATE 2-EU bailout plan raises short-term default risk: Fitch (reuters.com)
- Ireland’s Sovereign Debt Rating Cut by Moody’s (benzinga.com)
- Moody’s downgrades Irish banks (newstatesman.com)
- Moody’s cuts Ireland to verge of junk (business.financialpost.com)