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The financial crisis has seen a huge surge in government borrowing (Photo: Thomas Hawk)

ECB and rating agencies issue warnings on EU debt

A collection of prominent voices warned EU member states on Tuesday (26 January) about the risks of rising indebtedness hampering economic recovery and spooking financial markets.

European Central Bank chief economist Juergen Stark said the shocking state of public finances could lead to further credit rating downgrades of government bonds and ensuing market turmoil.

"We are seriously concerned about forecasts of strong rises in government deficits and the indebtedness of countr...

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The financial crisis has seen a huge surge in government borrowing (Photo: Thomas Hawk)

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