MELBOURNE, Australia - April 23, 2011 – U.S. finances are in almost as troubled a state as the worst hit members of the euro zone, economists say, underscoring the pressing need for Washington to reach agreement on how to reduce the deficit.

A gauge of "sovereign risk" from economists at Deutsche Bank placed the United States just behind Greece, Ireland and Portugal among 14 advanced economies.

The report, from economists led by Peter Hooper, warned that a failure to make substantial political progress on deficit reduction "would substantially raise the risk of a bond market crisis".

The warning comes days after Standard & Poor's said that it may lower its AAA assessment of the U.S., amid a political logjam over debt reduction in Washington, and will intensify market concerns about western governments' debts.

Last night George Papandreou, the Greek Prime Minister, strongly criticized credit rating agencies, saying they were "seeking to shape our destiny and determine the future of our children."