Describe the debt trap (fully)

C. The Direction of EuroZone Crisis Whether to apply for bailouts of Spain and Italy Debt Trap Raising Capital Costs Competitiveness Weaken An Increase in Government Debt Absence of Exchange rate and Interest rate Policies An increase in Interest on Payment Low Economic Growth Fiscal Deficit Expanding A rise in Government bond rates Avoidance of buying government bonds Credit rating downgrade Debt Sustainability Concerns