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17 Eurozone nations have reached an agreement they hope will help combat the region’s debt crisis and save the Euro. The new pact will introduce strict guidelines on tax and budget spending, and will bring harsh sanctions against countries that overspend. Interestingly, Britain backed out of the deal, as Prime Minister David Cameron felt it was not in the UK’s best interest.
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Credit Agency Standard & Poor’s has cut Italy’s sovereign debt rating by one level, from A plus to A. S&P justified its decision citing Italy’s weak growth and criticized Rome’s response to the debt crisis so far. Following the announcement, European markets opened marginally lower, but then rose in morning trading
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US President Barack Obama and House Speaker John Boehner traded barbs Monday night on national TV. Addressing the US public in Prime Time, about the debt crisis, the President accused Republicans of being unwilling to compromise on any tax hikes to achieve a balanced budget. Meanwhile House Speaker Boehner said that the President wanted a blank cheque for national spending, and that he would not let it happen.
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