Eurozone crisis live: Spanish recesssion deepens

31 Oct

OK, time to round up the day:

• Greece’s prime minister has announced that Athens has reached a deal with its international lenders over its austerity package, after four months of talks.

Antonis Samaras said Greece had secured the best deal possible, and warned of ‘chaos’ if the €13.5bn programme of cuts and tax rises was not passed. (see 13.14)

• But members of Samaras’s coalition do not share his views. The Pasok party has claimed that talks are still continuing, and accused Samaras of undermining Greece (see 17.49) . Democratic Left, the other junior coalition partner, is refusing to support the labour reform section of the package (see 13.41).

• Spain’s economy has continued to shrink. Data released this morning showed that Spanish GDP fell by 0.3% in the third quarter of 2012 (see 8.06am) Economists fear that the current quarter will be even worse, and warn that the Spanish economy is in a precarious state (see 8.45am).

• German unemployment rose last month. The jobless total rose by 20,000 – more than expected. (See 9.12am)

• Italy held a successful bond auction, with borrowing costs at their lowest since May 2011. Expects said that Silvio Berlusconi’s threat to trigger an early election was being ignored…. (see 10.48am)

• Argentina was put on negative ratings watch by Fitch. Move comes after Argentina lost a court case over how it repays debts which it defaulted on in 2002 (see 15.13).

• The heads of the IMF, OECD, ILO, WTO, the World Bank and the German government warned that the crisis wasn’t over. In a joint statement, they said the recovery was fragile and debt levels too high (see 17.21)

That’s it from me — I’ll be back bright(?) and early in the morning for another day of rolling coverage of the eurozone crisis. Until then, thankyou and goodnight!


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