South-Europe’s creditworthiness keeps eroding as demonstrated by the latest assessment of the cepDefault Index. Italy’s erosion consolidated in 2011; as regards Greece, the negative trend did not only continue but declined even further; Spain is somewhat crumbling but – apart from the banking crisis – not doing too badly.
In Portugal, however, the vigorous structural reforms now bear fruit – an upward trend is soon to emerge. It is very likely that Portugal will regain its full creditworthiness in 2015.
All other South-European countries need to improve their competitiveness through structural reforms too.
