Already the affects have been witnessed, the euro fell sharply against the dollar Monday as heightened concerns over Greece and reports of German contingency planning in case of a default by the southern European country weighed on the common currency.
Greece‘s government announced Sunday that it would impose a new property tax in order to cover the shortfall in its budget targets this year. Covering the gap had been a key issue in talks with its international creditors in exchange for additional financial support.
Adding to concerns were weekend reports that Germany was preparing standby measures in case Greece defaults on its debts.
Despite assurances from Germany though, markets both in the US and Asia have taken a hit overnight, and more maybe soon to come. Also, more concerns have emerged from Spain and Italy, that markets there too may take a hit if overall European debt remains unsolvent.
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