More gloomy news for the euro zone, with a warning from the rating agency Moody’s.
It says the debt crisis is threatening the credit worthiness of all European government bonds.
The agency warns that if the markets are not stabilised soon, the credit risk will continue to rise.
Belgium is the latest country to have its credit rating downgraded, with Italy, Spain and France under increasing market pressure.
But the eurozone is still safe, according to some.
Bank of France Governor Christian Noyer said. “On the question of the possible break up of the euro area I think this is totally unreasonable, there is no plan B, this is absolutely out of the question. Absolutely out of the question.”
With increasing fears of contagion from bailed- out Greece, Portugal and Ireland, European leaders are said to be considering so-called elite bonds.
This would involve half a dozen strong euro-zone nations issuing common bonds to help other struggling members.