Borrowing costs continue to climb despite new pact
The EU’s much-touted fiscal agreement failed to calm financial markets, as traders sent the Euro down and borrowing costs for Italy and Spain up on Monday. News of the new pact, which would commit euro-zone nations to tougher budget targets, sparked a small rally in trading on Friday. Those gains, however, were erased after the weekend, as fears over the still little-defined nature of the agreement spread. French President Nikolas Sarkozy, meanwhile, was said to be preparing officials for a likely downgrade in France’s Triple-A credit rating; as many as 14 other eurozone states are also at risk of a downgrade.