As Markets Slip, Worries About Borrowing in Europe

Borrowing costs for Europe’s more vulnerable countries rose on Wednesday while stocks and the euro fell, as the possibility of a new credit downgrade for Portugal underscored fears that efforts to contain the debt crisis to Greece were failing, David Jolly and Landon Thomas Jr. report in The New York Times.

The European Union itself warned of “high uncertainty” about the region’s nascent recovery even as it raised its 2010 growth forecast for the 27-nation bloc to 1 percent, from 0.75 percent. “We must now ensure that growth will not be derailed by risks related to financial stability,” said Olli Rehn, the economic and monetary affairs commissioner.

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