The debt crisis is coming to the Eurogroup
In Brussels
The worst is past, but hold the debt crisis remains on the radar. While the EU finance ministers met in Brussels since Monday for their meetings back, the markets continue to worry about any difficulties on the obligations of "peripheral" countries, considered the weakest in the euro zone, where rates continue to move away from those of Germany, the most creditworthy borrowers in the euro zone, according to the markets.
A time overshadowed by the rescue of Greece, sovereign risk has returned in the markets at the heart of the summer with the degradation of the controversial memorandum of Ireland by Standard & Poor's. The rating agency was concerned about the fly away cost of bailing out banks.On Monday, Finance Minister Brian Lenihan, has acknowledged that his government might be forced to undertake costly liquidation of the Anglo Bank Irisjh if Brussels rejects the announced restructuring plan. As a result, the yield gap between Irish and German bonds to ten years rose Monday 2 basis points to 342 points.
Ireland is not the only point of concern. Greece remains outstanding, to the extent that Pimco analyst warned Monday against a risk "significant" fault after European rescue plan. The rate differential with Germany reached 906 points Monday. Spain and Portugal are also seen as weak links.
Hungary followed closely
"The Eurogroup should really pay attention to what is happening in the market for sovereign debt," said Padhraic Garvey, ING Capital Markets, who said "the quarter that just looks rather delicate.The analyst is concerned not to see "no sign that investors buy massive debt of countries in the periphery." It is not a retelling of the Greek case, and the most likely scenario is that these countries can be refinanced. But "what we say spreads today, there is always concern about the markets. And ultimately, it is the viability of the Union it is a question, "he adds.
By November, the euro zone countries will seek to raise between 70 and 80 billion euros every month, against 43 billion in August, according to figures from ING. Germany, Italy and France topped the list of funding needs, but Spain will also have to greatly increase its emissions (7 billion).
The situation in Hungary, although not part of the euro area is also monitored.The country had been under surveillance by Moody's in July after having suspended its negotiations with IMF and the European Union. The subject is not officially on the agenda of the Eurogroup of this afternoon. But "it is not impossible that some ministers in the corridors are surprised by the Hungarian position," says a diplomat. "An explanation would be welcome. 'History reassure investors about the general adherence to fiscal rectitude.
