Spain and Italy Have to Refinance Over $530 Billion of Bonds in the Spring
January 1st, 2011Via: Reuters:
The euro currency area has only a one-in-five chance of surviving in its current form over the next 10 years because of competitive imbalances between its members, a leading British think tank said on Friday.
The Center for Economics and Business Research said Spain and Italy would have to refinance over 400 billion euros ($530 billion) of bonds in the spring, potentially sparking a fresh crisis within the 16-nation euro area.
“The euro might break up at this point, though European politicians are normally able to respond to a crisis,” said CEBR Chief Executive Douglas McWilliams in a list of 10 forecasts for 2011.
Sovereign debt crises in Greece and Ireland have rocked euro nations this year, leading some commentators to speculate that Germany could eventually lose patience with bailing out its more profligate neighbors, triggering a split in the currency bloc.
