By Jeremy Gaunt and Alan Wheatley – Contagion from Greece has already taken hold despite all the bail-outs, bond discounting and rhetoric that euro zone leaders have poured on the problem in months of excruciatingly slow negotiations and crisis meetings.
Comments from various euro zone leaders in recent days suggesting that perhaps, after all, Greece could leave the euro zone.
French President Nicolas Sarkozy has even laid out a vision of Europe in which euro zone countries accelerate and deepen their integration while a wider and expanding group outside the currency bloc stays more loosely connected.
If Italy were to fall by the wayside in the euro zone, France could thus face a loss of influence in EU policy-making vis-a-vis Germany. more> http://tinyurl.com/cowmj8b
- Italian borrowing costs at breaking point, Philip Pullella and Emelia Sithole-Matarise, Reuters
- Italy crisis deepens despite Berlusconi quit pledge (msnbc.msn.com)
- Five reasons Italy should scare you (curiouscapitalist.blogs.time.com)
- Papandreou Is Right to Let the Greeks Decide (theneteconomy.wordpress.com)
- Berlusconi quits in Italy’s big squeeze (theage.com.au)