Calling time on the euro?
Via Scoop.it – #GreekCrisis
“EU LEADERS face a daunting challenge in 2012 as the quest continues for a lasting salve to the debt debacle. After a second year of upheaval and blunder, they have yet to fully confront the danger that the emergency could blow asunder their cherished single currency.
It is not for lack of trying. In 2011 the leaders gathered in conclave at a record eight summits in Brussels, along with dozens of bilateral meetings around Europe. For all their infighting, they still took numerous initiatives to soothe the storms of contagion – but none was sufficient.
The turmoil grew only worse, taking down government after government as the rot spread from downtrodden “peripheral” countries such as Ireland to the wealthiest bastions of fiscal probity and rigour. With the triple-A credit ratings of Germany, France and their most powerful allies under threat, the biggest crisis in five decades of European integration casts a huge pall of gloom over the global economy generally.
In many ways, the parameters of a solution are clear enough. For Europe to overcome the crisis, political leaders will have to deliver on five fronts: tougher enforcement of EU budget rules via treaty change; a second Greek rescue; bigger bailout funds; a costly reinforcement of the banking sector; and the averting of a slide into recession. The big question is whether they have the gumption and staying power to deliver all that, and more besides.”