S&P goes a step further than dividing Europe into the core and the periphery, saying the EU...

|By:, SA News Editor

S&P goes a step further than dividing Europe into the core and the periphery, saying the EU will have a "three speed" economy over the next 18 months, making the ECB's job setting rates more difficult. Even with the PIGS mired in recession, S&P expects a rate hike by the end of 2011.