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“Eurozone crisis: EU facing economic disaster with two countries at centre of nightmare” by express.co.uk

“Eurozone crisis: EU facing economic disaster with two countries at centre of nightmare” by express.co.uk

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THE EUROZONE is teetering on the edge of another economic crisis with Italy and Greece at the centre of the storm, an economist has warned as coronavirus continues to grip the continent.
Europe is headed for a steep recession amid weeks of ongoing rows that laid bare the 27-member bloc's disunity in the face of the coronavirus crisis. And now an expert has warned the EU could be plunged into another debt crisis, like the one seen in 2009.

Mr Baptist warned a number of countries could default on their debt in the coming months as governments are under pressure to increase their spending limits to counter the economic damage caused by the COVID-19 pandemic.

He said: "A lot of emerging markets are reliant on international investors, international financial flows to get the funding to run a budget deficit, they find it harder to borrow in local currency — although there are a few exceptions.

“At the moment, with this big turn to risk aversion in international markets, even though there may be some emerging world governments that would like to spend more, they’re not going to be able to get funding.”

It comes after EU finance ministers last week agreed on a package of measures worth half a trillion euros to cushion the blow of the coronavirus pandemic.

However it left unresolved the most contentious question of how to share the financial burden that has so bitterly divided them.

The deal left matters open to further arm-wrestling between the divided member states, whose national leaders will meet via video conference on April 23.


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