Friday, May 6, 2011

The Beginning of the Eurozone Crackup?


Maybe this is why the ECB decided to hold off on the interest rate hike:
The debt crisis in Greece has taken on a dramatic new twist. Sources with information about the government's actions have informed SPIEGEL ONLINE that Athens is considering withdrawing from the euro zone. The common currency area's finance ministers and representatives of the European Commission are holding a secret crisis meeting in Luxembourg on Friday night.
This from Der Spiegel online (HT Ryan Avent).  Come next Monday morning will the Eurozone be the same? 

3 comments:

  1. To answer your question: Let us hope not.

    This has been dragging on long enough. It's time for some fireworks.

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  2. David.
    Greeks are "master blackmailers". Greece is the only country unworthy of membership in the Euro. But maybe the costs of membership under prevailing rules will prove to be too high for many.
    This is a thoughtfulpiece by Paul DeGrawe.
    http://www.econ.kuleuven.be/ew/academic/intecon/Degrauwe/PDG-papers/Discussion_papers/Governance-fragile-eurozone_s.pdf

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