Standard & Poor's cut its outlook on Spain's debt rated AA+ to negative but kept the rating unchanged. The move adds to concern that Greece's fiscal woes are spreading throughout Europe. Southern European nations and Ireland outpaced France, Germany and others on economic growth during the good times and are paying the price. "Those countries that had these high growth rates are now in trouble because much of that growth was financed by debt," said Paul De Grauwe, a professor of economics at Belgium's University of Leuven.

Related Summaries