EU debt costs rise after Ireland downgrade, Greek delays

Borrowing cost for the eurozone's most indebted economies rose on Friday after Moody's cut Ireland's rating to just above "junk" and Greece delayed fleshing out fresh austerity and privatisation plans.

Greek, Irish, Spanish, and Portuguese 10-year government bond yields rose as markets continued to believe further debt restructurings will be needed eventually.

Fears that Greece will default rose to fresh highs yesterday after Wolfgang Schaeuble, the German Finance ministers, that a further restructuring of the company's debt may be needed, despite last year's €110bn (£97bn) bail-out.

George Papandreou, the Greek Prime Minister, did little to appease market jitters when he presented the outline of fresh fiscal plans but said the measures would only be spelled out in detail after Easter.

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