Fate of eurozone hangs on markets' reaction to Greece, F&C says

The future of the eurozone now hangs on how markets react to the €110bn (£94bn) bailout of Greece, according to the director of UK equity strategy at F&C.

Ted Scott says the three-year package is probably not enough to stem the country's woes, and could be challenged in court. He adds: "Greece is still effectively bust and, therefore, the problem of its solvency remains extant and it may not prevent contagion to other periphery members of the eurozone and, maybe, countries beyond." If peripheral countries' bond yields and CDS spreads keep rising, he says, the EU will have to develop a strategy to rescue Portugal, Spain and other financially weak nations. "But the EU simply cannot afford to repeat its offer of salvation to other large...