A SNAPSHOT ON THE ECONOMIC AND SHIPPING ENVIRONMENT
The threat
of eurozone contagion seems more serious as we move towards the end of 2011
following the Standard & Poor’s warnings for downgrading six triple A
members of the eurozone. The economic and political uncertainties of the zone
pushed the US rating agency to announce that is placing Germany, France,
Netherlands, Austria, Finland and Luxemburg on “credit-watch negative”, meaning
that there is a one-in-two chance of downgrading their top notch ratings, from
triple A to AA+, within 90 days. The summit of European Union leaders at the
end of the week will have a remedial impact on the debt crisis as the S&P
move signals the need of France and Germany to follow decisive actions for the
eurozone’s rescue. Potential downgrades of Germany and France would affect the
European Financial Stability Facility, the bailout fund for struggling euro
member countries that has funded rescue packages for Greece, Ireland and
Portugal, pouring the single currency bloc in a speedy recession for 2012.