The iShares MSCI France Index (NYSEarca: EWQ), iShares MSCI Italy Index (NYSEArca: EWI) and iShares MSCI Spain Index (NYSEArca: EWP) were suffering losses of about 2% on Thursday. [European ETFs Stabilize After Big Drop]
Vanguard European ETF (AMEX: VGK), a broader regional fund, also slipped 2%.
Italy’s austerity package aims at cutting the country’s deficit by $70 billion over the next three years, while Spain will have to keep future budget deficits at a tight limit. Nicholas Sarkozy, France’s President, is trying to follow in Spain’s “golden rule” lead and push through a balanced budget amendment. [The Contrarian: Single Country ETFs]
Vanguard European ETF
Tisha Guerrero contributed to this article.