Eurozone embers flare up again

Portugal is likely to need a second rescue package from the EU and IMF, and Greece isn’t looking too good either, and France urgently needs reform.

The eurozone crisis is back, says Liam Halligan in The Sunday Telegraph. Last week, Portugal's ten-year bond yields jumped by 1.5% in just two days after a worrying (if short-lived) political crisis (two senior ministers quit the government). Yields look unsustainable. With GDP still shrinking, Portugal is likely to need a second rescue package from the EU and International Monetary Fund.

Greece isn't looking too good either, says Roger Bootle of Capital Economics in The Daily Telegraph. It has struggled to secure its latest tranche of funding from the EU and IMF, and the government's thin majority means that it could have difficulty pushing more reform and cutbacks through. Italy's growth forecasts look too optimistic. Spanish banks will be saddled with even more bad loans as the economy deteriorates. Ireland appears to have had "something of a relapse". Stagnant France urgently needs reform.

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