Wednesday, 18 January 2012
Downgrading of Euro zone
Financial Problems of European countries are not ending. Rating of European countries is decreasing continuously. Huge government deficit are creating problems. It is difficult for economy to recover soon. It will take much time.
Agencies are decreasing rating of European countries. Greece, Ireland, Portugal, Spain, Italy etc were considered effected from this debt problem. But now rating of other countries like France, Austria is also decreasing. This can increase borrowing cost of these countries. Standard & Poor's has downgraded the EU bailout fund to AA+ from AAA. Although matter of rating is not very important but more important is how much time does European economy takes to recover. Inflation rate is decreasing continuously