European Central Bank Warns Of A Tough Year Ahead For The Region

Tuesday, December 20, 2011 09:16
edit
European Central Bank Warns Of A Tough Year Ahead For The Region

Tags: euro | European zone | world economy

Slower economic growth will combine with the sovereign debt crisis to produce a perilous year for the Euro zone in 2012, the European Central Bank warns in a new report.
 

This Website Is For Financial Professionals Only


 


The market for European bonds has dried up at the same time governments and corporations have unusually high financing needs, the New York Times reports.


While the ECB believes the EU will remain together and the euro will survive, EU governments are not contributing as much funding as needed to the region’s bailout effort, the ECB warned.


“The transmission of tensions among sovereigns, across banks and between the two intensified to take on systemic crisis proportions not witnessed since the collapse of Lehman Brothers three years ago,” the report says.

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy