What should we call this sovereign debt crisis? There does not appear to be one overall name that we can apply to the phenomenon. Even in the year after the downturn, the consensus is revolving around the Great Recession. Markets are still not reacting with confidence to the Special Purpose Vehicle designed to issue debt shoring up the PIGS. It will allay the crisis and delay the reckoning.
Of concern is the lack of decoupling between Britain and the Eurozone. Despite Cameron's scaremongering speech yesterday, Fitch has greeted the latest well-trawled measures with some scepticism.
The FTSE 100 also closed down 0.8pc at 5028.15 as the uncertainty in
Europe
continued, and after Fitch, the ratings agency, issued a veiled
warning that
the Coalition Government would have to do more than was currently
implied to
reduce the deficit, or put Britain's AAA credit rating at renewed
risk.
Within hours, the Chancellor announced that he was running his sliderule over benefits, tax credits and public sector pensions, as Labour's client state commences its death rattle.