Jose Manuel Durao Barroso

The decision has been taken to reach this Monday 341 points, the highest level since August, when it decided to intervene for the first time to prevent contagion. This Tuesday, the risk premium on Spanish has fallen from 334 to 341 basis points. The IMF pointed to the risk of a new economic downturn and the World Bank pressed European leaders to make the right decisions. Standard & Poor s credit rating agency recognizes the stagnation of European banking. The European Central Bank (ECB) has resumed new Italian and Spanish debt purchases once this Monday the risk premium on Spanish reached 341 points, the highest level since August 5, when it came to exceed 410 points in some moments and caused that the ECB should decide to buy sovereign debt of Spain and Italy for the first time in history to prevent a spread of the debt crisis and curb speculators. According to stock market operators, behind the current rise in the risk premium on Spanish new fears are to a global recession and difficulties to overcome the European sovereign debt crisis, factors that have also led Monday to a collapse of European stock markets. Full recovery of the debt crisis, European and world economic leaders released conflicting messages that point to that panic to a new recession around the world. The first to raise the alarm has been the Director of the IMF, Christine Lagarde, who on Sunday pointed out in an interview with a German newspaper that there is a risk of a new economic downturn on a global scale, but that can still be avoided. A day after these statements, the President of the European Commission, Jose Manuel Durao Barroso, showed blunt to discard that economic growth in the eurozone is close to a recession, even if yes it will be modest: we do not anticipate a recession in Europe, said Barroso at a press conference.

Author: Jackie