In Greece a general strike expected to paralyze the country today

The Governments of the euro area will even not known forty-eight hours of respite. Not only the financial markets continue to doubt the usefulness of aid - yet massive - of EUR 110 billion Sunday for the Greece to avoid a default, but they have now decided to attack violently to the Spain and the Portugal, the two other weak links in the South of the eurozone (see page 28). The dreaded fear of contagion of the Greek crisis to other countries in the euro area is about to materialize again leaving European leaders in great distress. They have failed, so far, convinced that the European Union had mastered the management of the debt of its main members.

The infernal machine engages again: investors are speculating on a failure of the Spain and the Portugal to pay off their debt, pushing the rate of interest on government bonds 10 years on the rise - 4.09 for the Greece and 5.4 for the Portugal - while that Madrid and Lisbon exchanges have accused the coup and that the euro is fired downwards. For once, the rating agencies are there for nothing! They all three denial yesterday that it intends to degrade the quality of the debt of the Portugal and the Spain. This is currently the highest Fitch and Moody's while Standard and Poor's lowered last week his score from AA to AA, because of its "concerns on the budget of the country situation.

In the morning, market rumors that Madrid might ask a colossal financial assistance (EUR 280 million) contributed to confusion. The IMF and the Prime Minister José Manuel Zapatero denied these rumours. "It is folly to advance it, these rumours are intolerable," has launched the last Brussels where he was attending a meeting at the European Parliament. "I am confident in the strength of the solvency, public accounts of our country and in our ability to have an economic recovery", he added. The OECD Secretary-General, Angel Gurria came to his rescue by declaring Rome that compare the Greece with the Spain and the Portugal "does not reflect reality." The level of debt (reported to GDP) is about half from the Greece or 53.2 in 2009 compared to 115 for the Greece, even if its public deficit has deteriorated severely, falling to 11.2 of GDP due to the economic crisis.

Will these reassuring statements be sufficient to bring calm to market shortages by approximate the Greek crisis management The worst is not to exclude both the doubt is installed on the ability of economies the most fragile of the euro area to find enough growth in the next few years to be able to repay the original amounts of debt. Doubt remains in Greece where everyone now recognizes that the package of EUR 110 billion which should begin to be paid next week by European countries and the IMF will not suffice to cover all the needs of the Greek Government funding.

Social movements

For the accession of the German Parliament to vote the Greece help Friday, Finance Minister Wolfgang Schäuble obtained yesterday from German banks that they would be a gesture to Athens (see below) on their side, the French banks committed themselves to "maintain their exposure to the Greece", according to banking sources. The IMF will meet for its Sunday next to examine the $ 40 billion aid device announced for Athens.

In Greece, a general strike expected to paralyze the country today. These feed the concern of the markets who are skeptical of the "social sustainability" of the Greek austerity plan.