- Jane Foley is research director at Forex.com. The opinions expressed are her own. -

At the height of the financial crisis few argued against the need for a huge fiscal and monetary policy response.  As a result the global economy has moved away from the precipice.  For many governments 2010 will bring a different kind of precipice, this will be the year in which many electorates will be made to start paying for their governments’ huge fiscal binges.

Certain countries will enter this process severely disadvantaged.  Earlier this year UK debt was singled out by S&P for a possible downgrade.  This week Moody’s commented that UK debt along with that of the US will test the boundaries of its top AAA rating.

The UK stands with the U.S., Ireland and Greece as being one of the few economies likely to register a double digit budget deficit/GDP ratio this year.  Fitch’s downgrade of Greece this week has propelled it into the spotlight.  This news followed the decision from S&P to put its sovereign rating on negative watch.

The news forced Greece’s Finance Minister to reassure markets that Greek bonds are accepted by the ECB after concerns rose over whether it would meet ECB collateral eligibility once temporary "emergency" rules revert to normal.