The Euro Area Sovereign Debt Crisis

Citi Research analysts Giada Giani, Guillaume Menuet and Ebrahim Rahbari provide an update on the sovereign debt crisis in Europe.

Spain and Portugal debt crisis

Spain and Portugal give the analysts some cause for concern. Portugal’s Deputy Prime Minister announced that if the country passes the eighth and ninth troika reviews of its economics, it would likely take recourse to a “precautionary credit line” when the current bailout expires. The action would be similar to that of Ireland’s request for a similar credit in 2014. The analysts point out, however, that Portugal’s economy is weaker than of...