[QODLink]
Europe
Spanish debt woes weigh on eurozone
With impending election in Greece, Spanish and Italian efforts to avert eurozone-wide crisis will be put to test.
Last Modified: 14 Jun 2012 02:41

The credit ratings agency Moody's has downgraded Spain at a time the country's struggling banks are set to receive up to $125bn in bailout funding from the eurozone.

Is credit rating has been reduced from AAA to BAA, and the agency says it could make further downgrades.

Days after a bond sale the Spanish government touted as a success, there are new fears that a bailout of its banks may not have been enough to keep the nation from economic disaster.

The president of the European Commission, Jose Barroso, has called for greater financial integration within the EU, but all across the eurozone the worry of what will happen next is evident.

In Italy, Mario Monti, the prime minister, continues to insist that Rome is not in need of a bailout. But for some, the implementation of austerity measures will not be enough to save the Italian economy.

In Greece, this weekend's election will determine whether the country accepts the eurozone's bailout and austerity scheme or if it could be the first nation to drop out of the economic bloc.

Al Jazeera's Sonia Gallego reports.

178

Source:
Al Jazeera
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
Nearly half of Canadians have suffered inappropriate advances on the job - and the political arena is no exception.
Featured
Women's rights activists are demanding change after Hanna Lalango, 16, was gang-raped on a bus and left for dead.
Buried in Sweden's northern forest, Sorsele has welcomed many unaccompanied kids who help stabilise a town exodus.
A look at the changing face of North Korea, three years after the death of 'Dear Leader'.
While some fear a Muslim backlash after café killings, solidarity instead appears to be the order of the day.
Victims spared by the deadly disease are reporting blindness and other unexpected post-Ebola health issues.