On trading today the Euro has fallen against the dollar and pound. The cost of credit default swaps for Irish, Portugese, Italian, Belgian, German and Spanish debt is still climbing. Ireland received an 85 billion Euro bailout from the EU and IMF, with final details released on Sunday, where there was also a proteset attended by over 100,000 marchers. Europe's debt woes is spreading from Ireland, to Portugal, Spain, Italy and Belgium may be targeted next by bondholders.
Ireland is hurrying through a new austerity budget on top of the savage cuts that has already hit the Irish Republic. December 7 is slated for presentation of the Irish budget. The Taoiseach Brian Cowen has a slim 2 vote majority in parliament.
Many bondholders believe that Belgium, which has debt of 100% of GDP. Since April Belgium which has French and Flemish speakers, has not formed a government.
Similar to the scenario in Ireland, Portugese and Belgian ministers are insisting that their finances are fine and there is no need for a bailout. Just 2 weeks ago Cowen and his Finance Minister were issuing such official denials. In the next few weeks the bailout contagion will unfold and we will learn if the Portugese were right.
