DUBLIN – Alarming financial news flowed out of Europe in a torrent Friday, just a week after the European Union leaders struck a deal they thought would contain the continent’s debt crisis.

The bombardment shredded hopes of a lasting solution to the turmoil that is endangering the euro — the currency used by 17 European nations — and threatening the entire global economy.

In quick succession:

The Fitch Ratings agency announced it was considering further cuts to the credit scores of six eurozone nations — heavyweights Italy and Spain, as well as Belgium, Cyprus, Ireland and Slovenia.

Ireland’s economy shrunk again much deeper than had been expected, with its third-quarter gross domestic product falling 1.9 percent. Ireland is one of three eurozone nations kept solvent only by an international bailout.

Bankers and hedge funds were balking in talks about forgiving half of Greece’s massive debts, a key issue in the debate over Greece’s second rescue bailout.

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The red ink in Spain’s regional governments rose 22 percent in the last year, endangering the central government’s efforts to cut overall Spanish debt.

On the positive side, Fitch said France should keep its top AAA credit rating though the country’s debt load is projected to rise through 2014. Italian lawmakers passed Premier Mario Monti’s austerity package in a confidence vote, though many still objected to its pension reforms.

French officials and investors had feared that France could get downgraded, which would have had repercussions for the entire eurozone. France and Germany’s AAA credit ratings underpin the rating for the eurozone’s bailout fund.

EU leaders said Friday that they’ve distributed the text of their proposed budget-stability treaty, supposed to become EU law by March. But governments face the likelihood that Europe’s debt crisis will prove tougher to overcome than even the most recently revised forecasts.

 


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