Invesco's Greenwood: UK at risk of sovereign debt crisis

The UK and the US could be dragged into a eurozone-style sovereign debt crisis if they waver on austerity plans, said Invesco's John Greenwood.

The group's chief economist said both economies will be likely to see slow growth this year as they press on with debt reduction plans, but warned any change in policy could see them dragged into a sovereign debt crisis of their own. "Large parts of the developed economies must focus on debt repayment by restraining consumption and postponing new investment, leading to sub-par economic growth," he said. "In response, governments initially stepped up their fiscal support programmes but, since debt levels were already high, the additional burden of official sector debt has now triggered...