ECB directors must tackle mounting eurozone tensions: analysts

FRANKFURT, (AFP) – European Central Bank policymakers will confront mounting eurozone financial tensions at a meeting Thursday in the face of a brewing crisis brought on by Greece’s spectacular public deficit and debt.

That the ECB’s main interest rate will stay unchanged at a record low of one percent is considered a done deal for most, if not all, of 2010, analysts say.

Although headlines are being grabbed by Athens and its deficit of 12.

7 percent of gross domestic product and debt of roughly 113 percent of GDP, other eurozone countries have serious problems too.

Italy, whose economy represents a much bigger portion of the 16-nation eurozone, has debt equivalent to 115 percent of output, also nearly twice the accepted eurozone limit of 60 percent.

Portugal’s public deficit last year was 9.

3 percent of GDP meanwhile, more than three times the eurozone ceiling of 3.0 percent, and Spain has estimated its shortfall at 11.

4 percent.

On Friday, the Spanish government unveiled an austerity plan to save 50 billion euros (70 billion dollars) over three years, while Ireland has also drafted a a drastic fiscal programme that includes public sector pay cuts.

Analysts do not expect any country to leave th