November 3, 2011
Europe's sovereign debt crisis has moved into a critical new phase with the admission for the first time that the referendum planned in Greece could result in the country leaving the monetary union.
The four members of the eurozone attending the G20 summit – Germany, France, Italy and Spain – were holding talks in Cannes this morning to discuss what to do next. Unsurprisingly, the mood was grim.
Splits were appearing in the Greek cabinet, Italian bond yields were rising after Silvio Berlusconi's cabinet came up with no new proposals for tackling Italy's debts and for the first time European leaders have had to confront their worst nightmare: the euro may break up.
Nicolas Sarkozy, Angela Merkel and their fellow leaders have known for the past two years that Greece has had a big problem with the debts accumulated during the first decade of the single currency's life. But up until now they have insisted that monetary union was permanent, with no mechanism in place for a country that wanted to leave.
More
No comments:
Post a Comment