European shares experienced a rise in early trading and it is expected that there will be more market instability to follow in the midst of further concern over the rising levels of eurozone debt. The current high levels of government debt in the eurozone prompted Michael Heffernan of Austock Group to label the present situation as the "European disease" which he said is "infecting markets all around the world at the moment".
There is growing concern over the stability of the eurozone and both the German and French parliaments are set to debate their country's contribution to the European Financial Stability Facility which was set up to bail out any eurozone nations struggling with a debt crisis. There are now fears that other nations such as Spain and Italy will be forced to follow in Greece's footsteps unless action is taken now. Robert Zoellick, the president of the World Bank, told the BBC's Asia Business Report: "Europe now faces a key change of whether it has a fiscal union or to change the nature of the eurozone. Decision time is coming."
There is also much worry regarding the state of both the European and US economies. With the unemployment rate stagnant at 9% and predictions that it could remain that way until the end of next year, fears are increasing over the possibility of a US recession.
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