Is the eurozone unravelling?

There has been more bad news for the beleaguered eurozone, as the European Commission cut its forecast economic growth in the area for 2012 to 0.5%, down from a prediction of 1.8% made in the spring.

The commission predicted that if there were no change in political policy then Italian public debt would remain unchanged at 120.5% of GDP next year, before falling to 118.7% in 2013.

The commission also forecast that next year Greece would see its debt level rise to 198.3% of GDP.

Questions are now being asked about whether the eurozone is unravelling.

Bill Hubard is chief economist at Markets.com and he told the BBC "this is contagion and the question is - what is it going to cost us?"