Spain’s declining credit rating forcing EU leaders to focus on debt crisis

European economists are under pressure now to take appropriate measures to solve debt crisis in Oct 23 Summit. Moody’s cut for Spain’s bond rate from A2 to A1 has degraded its condition. The move follows the biggest strike by Greeks against austerity drive, which has put the country’s economic condition at stake.

Global market is desperately waiting for EU leaders’ summit on Sunday, which is expected to bring some decisive results.

The cut in Spain’s rating has hampered Wall Street shares to great extent on Tuesday. The change also indicates similar negative trends from Greece too, which is already debt-striken.

However, Germany has decided to take a more defensive approach. The German Chancellor Angela Merkel warned people that EU leaders might not be able to solve this crisis in a single summit. She opined that this crisis needs a long-term effort to be solved, still the diplomats are expected to reach some relevant and impactful decision.

The summit would also carve out strategies to reduce debt in Greece as well as ways to strengthen banks with more exposure to euro zone and control their rescue funds.