We were told it was weeks to save the Euro. That came and went. Now we have apparently another few days. Mrs Merkel seems to think there is plenty of time to sort out the problems of governance, transfer payments, and control of taxes and spending. Mr Sarkozy seems to be in more of a hurry, partly because he faces an earlier election.
I think there is still a chance that Germany will partially relent on bond buying and money printing by the ECB to buy them more time. There is also a chance that the markets will force break-up, moving faster than the pace of integration and problem solving within the zone. I put it around 50/50. It’s all in Mrs Merkel’s mind. It’s the race to change German public opinion about printing and borrowing together versus the speed of the market imperatives.
Today I invite you, the readers, to tell the world what you think the Euro’s chances of survival are. Do you think they will print and spend enough to buy them time? Do you think more austerity in Greece and Portugal, Spain and Italy, on German recommendation, can pull them through? Or do you think the relentless pressure of the bond markets will force countries out of the currency?