November 30th, 2010
09:27 AM GMT
(CNN) – In the wake of the bailout of Ireland’s banks – and the bailout of Greece still fresh in mind – investors are wondering who will be next.
Several countries in Europe have pushed through tough austerity measures, and the European Commission says those measures will take a toll on economic growth. It's predicting growth in the 16-nation eurozone at 1.5 percent next year, slightly lower than an earlier forecast.
All the uncertainty has weighed on European stocks and the euro, which has dropped 6.1 percent against the dollar the past month.
On Tuesday Asian markets closed largely lower, as concerns continue that the European debt problems will spread to other European markets, especially from Portugal. The Central Bank of Portugal comments that consolidation of public finances is needed is putting pressure on the markets.
Portugal doesn’t have the bank woes on scale of Ireland, nor the public debt problems on par with Greece, said Vanessa Rossi, senior economist at Chatham House, on World Business Today. “Nevertheless, it’s still between a rock and a hard place,” she said.
Will Portugal, or perhaps Spain (whose government debt yields continue to climb, raising its borrowing cost), be next in line for a Eurozone bailout?
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