The euro debt crisis has spiralled into a new phase this past week. Italy and Greece now have new governments largely made of ‘specialists’, and France moved to the centre of attention.
Markets and the Paris government were stunned when Standard & Poor’s mistakenly downgraded France. This triggered a flurry of political activity and strong reactions of the bond market. Stefan Grobe talks about the situation with Gilles Moec, head of European Economics at Deutsche Bank in London.
Also on the programme we look at the mounting pressure on the ECB to do more to solve the crisis, and we have a story on the Dubai Air Show.