Eurozone Sovereign Debt Crisis May Lead To Cut In EMA Budget

Deficits remain a key challenge to the majority of governments across Europe. New fiscal austerity measures in the eurozone, attempting to calm bond markets, reinforce our weak growth outlook and add to the existing problems of over-leverage, unfavourable demographics and rising unemployment. The combination of spending cuts and tax hikes are likely to hammer private consumption, especially around the eurozone's periphery, reinforcing our view that the eurozone will be the weak link in global demand through the medium term. In Emerging Europe, the end of the regional recession, stabilisation of currencies and the sharp mitigation of external account deficits have

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