France Fretting About Prized Aaa Debt Rating

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Greek leader: Euro 'is only choice' ATHENS, Greece -- New Greek Prime Minister Lucas Papademos said he is determined to keep the country in the eurozone, but acknowledged it is set to miss its deficit-reduction target this year. Papademos was sworn in last week to head a 15-week coalition government. A vote of confidence in Papademos' new government will take place in parliament Wednesday. Papademos said the country's budget deficit is set to reach 9 percent of gross domestic product this year, higher than earlier targets. He declared that Greece already has met requirements to receive the next 8 billion euro ($10.9 billion) rescue loan installment, vital to avoid bankruptcy. But he warned coalition parties that signing a commitment to back the new debt deal is required for that vital payout. Earlier Monday, conservative leader Antonis Samaras defied a European Union demand to provide a written commitment to the new debt agreement -- or else see rescue loans frozen. Italian leader not ready to speculate ROME -- Italy's Premier-designate Mario Monti said it is "premature" to say if the country will require more tough measures to rescue its finances and revive its economy, as he sought enough backing from political parties to form a government. Two days after Silvio Berlusconi resigned as premier, Monti said he can't say when he would have a Cabinet lined up. Italy's government raised $4.1 billion in a sale of five-year bonds on Monday, but the 6.29 percent interest rate was the highest since 1997. Italy paid a much lower rate of 5.32 percent at a similar auction last month.

PARIS - The interest rate France pays to borrow money rose again Monday - and along with it fears that the country will lose its cherished AAA credit rating.

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France Fretting About Prized Aaa Debt Rating

Theoretically at least, that rating - the highest a nation can have - allows France to borrow money from the markets cheaply.

But France pays more than nearly every country that has...

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