Greek borrowing costs
have risen above the eurozone "crisis-level" for the first time in
over six months as fears about the country's abilities to repay its debt
resurface.
Greek bond yields fell
below this level earlier this year for the first time since 2009, an event that
was seen as a mark of confidence returning to the eurozone.
Returns fell to around
5.5pc as recently as last month but have crept back up in October as questions
about growth return.
Inflation in the
single currency region is at perilously low levels and the Eurozone’s core
territories - France and Germany - are struggling.
German investor
sentiment fell for the 10th straight month to hit a 22-month low in October,
according to the influential Zew survey.
The reading fell to
-3.6 points from 6.9 points in September, worse than analyst predictions of a
flat figure.
The Eurozone’s biggest
economy is facing the prospect of falling into recession this year, as
sanctions on Russia bite. The economy shrank by 0.2pc in the second quarter of
the year.
Other factors hitting
investor confidence are the spread of the deadly Ebola virus, and conflict in
the Middle East.
However, yields in
Germany, France, Italy and Spain fell on Tuesday, making Greece an outlier,
suggesting other fears are plaguing investors.
The rise of the
radical left Syriza party, led by Alexis Tsipras, is also a potential factor.
The party, currently leading in the opinion polls, has advocated defaulting on
Greece’s debts and reversing the country’s austerity measures.
Economists at Citi
pointed out that a snap election, expected to be called if the current
parliament’s presidential candidate is not approved, would be likely to make
Syriza the largest party in a new parliament.
(Πηγή: telegraph.co.uk)
