‘Today the problem is solved,” declared French President Nicolas Sarkozy just five weeks ago. “How happy I am a solution to the Greek crisis, which has weighed on the economic and financial situation in Europe and the world for months, has been found.”
Just when you hoped it really was “solved”, the eurozone crisis has roared back on to the global agenda.
Like a lingering bad smell, the fundamental contradictions at the heart of monetary union can be blanked out for a while but refuse to go away. The busted banks, the grotesque indebtedness, the inherent contradictions – in recent days they’ve all burst back into view.
The eurozone has deeply entrenched economic, financial and political problems. No amount of tub-thumping – by Sarko, European Central Bank President, Mario Draghi, or anyone else – can change that fundamental truth.
The focus has been on Greece but now it is most definitely on Spain. Will Spanish debt woes spiral out of control and, if so, can they then be contained? That’s the €1 trillion question. But how much is that in pesetas?
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Young Greeks return to the land
12:03 pm EDT, April 15th, 2012 — Sarkozy’s comeback hopes crumble, polls show
12:04 pm EDT, April 15th, 2012 — If Nicolas Sarkozy thinks the FT is a free market newspaper, God help France
12:06 pm EDT, April 15th, 2012 — Huge interest in Cypriot hydrocarbons
12:08 pm EDT, April 15th, 2012 — Globalization at Risk, What Does it Mean for Investors?
12:10 pm EDT, April 15th, 2012 — Eurozone crisis focuses on Andalucía, home to sun, sand and soaring deficits
12:12 pm EDT, April 15th, 2012 — Roubini: Eurozone needs a growth strategy, not more austerity
12:14 pm EDT, April 15th, 2012 — Rising debt, no jobs, troubled banks: take your pick, Spain’s got problems
12:16 pm EDT, April 15th, 2012 — UK defence firms fear austerity drive will shoot down export revival
12:19 pm EDT, April 15th, 2012 — Europe struggles to inject growth as recession sets in
12:24 pm EDT, April 15th, 2012 — We saw European debt crisis coming