Germany's Credit Warning Underscores Eurozone Problems

 PARIS — Stock markets and the euro currency dipped Tuesday after the international financial-rating agency Moody's lowered its credit outlook for Europe's strongest economy, Germany.  New jitters¹ are also surfacing over two shakier European economies, Spain and Greece.

By lowering Germany's credit outlook from stable to negative - along with those of two other top-rated countries, Luxembourg and The Netherlands - Moody's is signaling that the eurozone's crisis is affecting even its strongest economies.

The move is the first step to a possible downgrade of Germany's sterling² AAA credit rating.  Europe's second-largest economy, France, lost its AAA rating earlier this year.  So did Austria.

Explaining its warning, Moody's said Germany was vulnerable to a possible Greek exit from the eurozone and the need to increase financial support to other ailing³ countries like Spain and Italy. 

Analyst⁴ Benedicta Marzinotto, of Brussels-based think-tank Bruegel, says it also reflects larger fears.

"I think the decision to reduce the rating on Germany is a sign that the rating agencies are considering the possibility of a eurozone breakup which would have consequences also for Germany," Marzinotto said.

Another analyst, Stewart Fleming of London-based Chatham House, said he was surprised at Moody's move.

"The German economy is fundamentally very, very strong," he said.  "Far stronger than the United States economy, the British economy, the Japanese economy.  So I certainly do not see this as an indication that the crisis is about to spread to Germany.  It is not."

It appears a June European Union summit aimed to ease market fears about the eurozone has had limited impact.  Borrowing costs are soaring for Spain, despite an EU agreement to bail⁵ out Spanish banks.

And Greece is having a hard time paying back its debt and enacting⁶ its austerity promises.  Creditors are in Athens now to assess its progress.  But with the Greek economy shrinking faster than expected, expectations are again mounting that that the country may exit the eurozone.

Fleming believes a Greek exit would be disastrous⁷.

"Leaving the eurozone in the middle of an economic, financial and political crisis is of no advantage to Greece or its people," he said.  "So efforts will be made to keep Greece in the eurozone, to hold Greece's feet to the fire.  And try and get Greece to take reforms, economic, political and social reforms, which it should have undertaken any time over the past 20 years."

Eurozone leaders are not expected to meet again for several weeks.  But as the summer goes by and their problems mount, analysts⁸ say they may need to take action sooner, rather than later.

1 jitters   

n.pl.紧张(通常前面要有the)

参考例句：

• I always get the jitters before exams. 我考试前总是很紧张。
• The whole city had the jitters from the bombing. 全城居民都为轰炸而心神不宁。

2 sterling   

adj.英币的(纯粹的，货真价实的)；n.英国货币(英镑)

参考例句：

• Could you tell me the current rate for sterling, please?能否请您告诉我现行英国货币的兑换率？
• Sterling has recently been strong,which will help to abate inflationary pressures.英国货币最近非常坚挺，这有助于减轻通胀压力。

3 ailing   

v.生病

参考例句：

• They discussed the problems ailing the steel industry. 他们讨论了困扰钢铁工业的问题。
• She looked after her ailing father. 她照顾有病的父亲。

4 analyst   

n.分析家，化验员；心理分析学家

参考例句：

• What can you contribute to the position of a market analyst?你有什么技能可有助于市场分析员的职务？
• The analyst is required to interpolate values between standards.分析人员需要在这些标准中插入一些值。

5 bail   

v.舀（水），保释；n.保证金，保释，保释人

参考例句：

• One of the prisoner's friends offered to bail him out.犯人的一个朋友答应保释他出来。
• She has been granted conditional bail.她被准予有条件保释。

6 enacting   

制定（法律），通过（法案）( enact的现在分词 )

参考例句：

• Generally these statutes apply only to wastes from reactors outside the enacting state. 总之，这些法令只适宜用在对付那些来自外州的核废料。 来自英汉非文学 - 环境法 - 环境法
• In addition, the complexion of enacting standards for live working is described. 另外，介绍了带电作业标准的制订情况。

7 disastrous   

adj.灾难性的，造成灾害的；极坏的，很糟的

参考例句：

• The heavy rainstorm caused a disastrous flood.暴雨成灾。
• Her investment had disastrous consequences.She lost everything she owned.她的投资结果很惨，血本无归。

8 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。