eu_flag.pngLocal economic analysts say the recent downgrading of seven European nations’ credit ratings is set to further weaken the Euro and shift the global economic power to the East and other emerging economies.

The European trading bloc, which in the recent past has failed to come up with a decisive solution to the economic crisis facing the grouping, last week saw the deepening of the crisis when rating agency, Standard and Poor stripped nine European countries including France and Austria from their triple A rating.

Economic analyst, Mr Willie Ganda, who projected the economic woes to persist in the near future, noted that the downgrading of the credit ratings mean high default risk and unattractiveness of the Eurozone markets.

Some observers are already projecting a deeper recession to affect Europe as well as subdued economic growth in the short term.

Enhanced Consultant Chief Executive Officer, Mr Malvern Chimutashu believes the deepening crisis will result in increased interest on foreign resources by the affected countries whose economies have relied heavily on foreign plunder.

Europe’s financial services sector and the stock markets have been some of the hardest hit.

The economic grouping, which is still to deal with the Greece debt burden, is set to receive more negative headlines when other agencies such as Fitch announce their ratings this week.