The euro steadied Monday as investor fears of a Greek exit from the euro appear to have been calmed by a raft of denials over the weekend.
Speculation that Greece was considering leaving the euro ratcheted up Friday as it emerged that some of the EU's most important finance ministers were gathering in Luxembourg to discuss the country's debt predicament, according to
Standard & Poor's downgraded Greece's debt again, and Moody's Investors Service put its rating on review for downgrade, compounding pressure on the government as it seeks to come up with a solution shy of a debt restructuring, including privatizing state enterprises, though there is resistance to that step.
Analysts and investors said they did not see how Greece could get its debt under control when output is slumping and there is little sign that efforts to restructure the economy are bearing fruit.
"Austerity is fine, but what you really need is investment and growth, and we just don't see that," said Jonathan Lemco, a sovereign credit analyst at Vanguard, the mutual fund company,