I have just given an interview for UTV Radio. The interview was conducted by Stephanie Grogan. It was on the current bond market crisis Italy and Spain are facing. It will be broadcast on a number of local radio stations around the country. I outlined how Italy and Spain have gone above the threshold of 6% (which is considered the maximum sustainable rate) and how these are the highest bond rates either country has faced since joining the Eurozone. My view is that, while serious, the European Commission will act to help stabilise the issue. The long term implications are likely to be changes in the structure of the Eurozone and the Stability Fund proposed.
Justin Doran is a Lecturer in Economics, in the Department of Economics, University College Cork, Ireland.