City rejects Eurozone debt deal

 
Steve Dinneen
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THE City has delivered a crushing vote of no confidence to Eurozone plans to avert a deepening of the debt crisis, according to our latest poll, run in association with PoliticsHome.com.

Net confidence in the Eurozone deal as a whole was at –41 per cent. A damning 65 per cent of those polled said they were sceptical about the plans, with a fifth saying they were “completely sceptical”. Only seven per cent were either “very confident” or “completely confident” that the deal will halt the crisis.

A plan to boost the bailout fund to €1 trillion was the least popular prong of the Eurozone deal, with a net approval rating of –21 per cent. Overall 56 per cent said they were sceptical that increasing the size of the bailout fund would stop the crisis from worsening.

Forcing Eurozone banks to raise an €106bn of extra capital received a net approval of minus nine per cent, with almost half sceptical of the measure, compared to 40 per cent who said they were confident it will help.

The least unpopular prong of the deal was asking private investors to take a 50 per cent haircut on the value of Greek bonds. The net disapproval for this was minus two per cent.

Markets surged last Thursday after Eurozone leaders finally struck the deal overnight on Wednesday, with the FTSE gaining almost three per cent. However, the index fell slightly on Friday as doubts appeared to creep in.