Standard & Poor’s has just published the report titled, “The Eurozone Debt Crisis: 2013 Could Be A Watershed Year.” According to the study the euro zone could start to overcome its sovereign-debt troubles this year, though implementation risks remain.
The ratings company said the euro zone in 2013 could begin to sustainably overcome the market volatility and fragmentation that have impacted it in recent years. The region may also experience the return of some member countries that have borrowed from the European Stability Mechanism or the European Financial Stability Facility, such as Ireland and Portugal, to more substantial primary issuance in the capital markets, S&P said.
The firm noted the euro zone’s success in reversing its credit trends will depend on policy makers’ responses to the region’s continuing economic, political and social risks, though European leaders have unveiled much of the groundwork for the region to emerge from its sovereign-debt crisis. S&P holds negative outlooks on the majority of its euro-zone sovereign ratings.
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