Debt crisis: Global markets plunge as eurozone contagion speads
Eurozone countries are failing to stop the “contagion” of the debt crisis, the President of the European Commission warned yesterday.
By James Hall, and Richard Blackden
José Manuel Barroso’s warning came as stock markets plunged around the world amid growing fears of another global recession.
Mr Barroso called for an emergency strengthening of Europe’s bail-out mechanism. He said he had “deep concerns” about the faltering Spanish and Italian economies.
The stark message was delivered as the FTSE 100 suffered a 3.43pc fall, its biggest since the height of the banking crisis in March 2009.
In the past five days, investors have lost a total of £125bn.
The doubts spread to America as the Dow Jones Industrial Average fell 4.3pc to its lowest point since December 1 2008.