| Author (Person) | Milne, Richard |
|---|---|
| Series Title | Financial Times |
| Series Details | 4.8.11 |
| Publication Date | 04/08/2011 |
| Content Type | News |
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Article reports that European policymakers were struggling on the 3 August 2011 to contain the global market turbulence that had triggered sharp share price falls and a rush to haven assets. Italy and Spain remained under threat. Switzerland’s central bank also made a surprise attempt to halt the rise in value of the Swiss franc on the 3 August 2011, arguing the popular haven asset was 'massively overvalued'. Jose Manuel Barroso, European Commission President, urged EU countries to speed up ratification of the recently agreed new-model bailout mechanism to reassure markets after jitters on Italy and Spain. In a flash statement circulated to the media on the 3 August 2011), Barroso voiced 'deep concern' about the increase to record highs in the cost of borrowing for the two countries in recent days. He said that 'the tensions in bond markets reflect a growing concern among investors about the systemic capacity of the euro area to respond to the evolving crisis'. In a letter to EU heads of state sent on the 3 August but made public on the 4 August 2011, President Barroso warned that the eurozone debt crisis was still spreading despite the 21 July 2011 agreement over a bloc-wide bailout fund. |
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| Subject Categories | Economic and Financial Affairs |
| Countries / Regions | Europe, Italy, Spain, Switzerland |
