Euro crashes as investors baulk at debt laden states

Steve Dinneen
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SHARES across the eurozone tumbled yesterday as investors reacted to fears over spiralling Spanish, Portuguese and Greek debt.

The euro plunged to a seven-month low against the dollar as investor fears over mounting public debt undermined confidence in the ability of the European countries to fund their budget shortfalls.

The head of the International Monetary Fund called for painful steps to cut huge fiscal deficits across Europe, saying no country should be under the illusion it was possible to escape the financial crisis without paying the cost. The Portuguese government’s defeat over a regional finance bill, a climbdown by the Spanish government over pension reform, and protests by tax officials in Greece compounded fears of a sovereign default in the eurozone.