BERLIN (MNI) – Deutsche Bank chief economist Thomas Mayer fears
that the public debt crisis will flare up again in the Eurozone later
this month, according to an article in German business daily
Handelsblatt.

“We must prepare ourselves in Europe for troubles in the autumn,”
Mayer told the newspaper in an interview published Friday.

Spain, Portugal and Ireland still haven’t got their budget problems
under control, he warned. “There is a big risk that one of these three
countries will have to draw on the Eurozone rescue fund — maybe still
this year,” Mayer reckoned, noting that the risk premium for government
bonds from these countries increased last month.

Even the EU rescue fund might not be able to save Spain, Portugal
and Ireland from bankruptcy, Mayer warned. The EU urgently needs a
procedure for an orderly insolvency of Eurozone member states, he said.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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