Italy is expected to grow by 0,1 per cent in 2012, due in part to fiscal austerity measures. Some analysts forecast a deep recession in Italy which would exacerbate the negative debt dynamics of that country. The Greek economy is expected to contract by –2,8 per cent.
The AAA rating of France now at risk, and the European Financial Stability Facility (EFSF), which was established as a means to provide liquidity support to member states, is experiencing problems leveraging their funds.