TROUBLES in the Italian and Portuguese economies could blow up this year to shatter the eurozone, as disastrous Greece almost did last year.
Investors have become increasingly concerned about the anti-austerity agenda of the Portuguese socialist government, fearing defaults could lie further ahead, which has seen the borrowing costs for the government soar.
Debt levels in the country now stand at a staggering 130 per cent of GDP making Portugal one of the most indebted in Europe, according to economists at RBS.
At the same time, traders appear to be particularly worried about the Italian banks, which are estimated to hold around £270BILLION (€350bn) of bad loans – more than 30 per cent of the eurozone’s total.
Italy’s top stock market dropped by as much as 20 per cent in recent weeks as fears over a European banking crisis gathered pace.
Full article: Eurozone crisis IMMINENT as debt-ridden Italy and Portugal on verge of being new Greece (Express)