Euro Plummets on Greek Default Fears

Developments in Portugal, Finland deepen market panic
By Kevin Spak,  Newser Staff
Posted Apr 18, 2011 3:33 PM CDT
Euro Plummets on Greek Default Fears
In this Sept. 2, 2009 file picture the Euro sculpture is photographed in front of the European Central Bank ECB in Frankfurt, central Germany.   (AP Photo/Michael Probst, File)

(Newser) – The euro took a nose dive today, and so did the bonds of weak eurozone nations, as investors panicked over fresh speculation that Greece will have to restructure its debt in the near future, and the election of an anti-Euro party in Finland. German government sources tell Reuters that they doubt Greece will be able to get through the summer without restructuring. Greece, however, has repeatedly denied that it would do so. "It would have catastrophic consequences," the Bank of Greece's governor said.

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Speculation was also rampant that the new Finnish government would throw a monkey wrench in Portugal’s bailout negotiations. EU negotiators issued a statement today insisting that wouldn’t happen. “There are no changes in plans,” a spokesman said. “We're fully confident that member states will honor their commitments.” Irish Prime Minister Enda Kenny, meanwhile, reassured observers that Ireland intended to pay its debt. “The Greek government will obviously deal with this problem in the best way it can,” he told Bloomberg. “We have no intention of defaulting.” (Read more euro stories.)

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