By Michael Hirsh - The euro crisis that began two years ago in Greece has shown the folly of thinking that, despite a common currency, stronger countries such as Germany can remain untouched at the center of the European system, and that problems can be confined to weaker countries on the periphery. The fractures in the euro zone now run right up its spine to Spain and Italy, which are both under market assault.
Signs coming out of Germany indicate that, despite the dithering of Chancellor Angela Merkel‘s government and the persistent grumbling among bankers and industrialists, the political tide is shifting toward creating an even deeper remake of the Continent–possibly even a “United States of Europe.”
The best bet is that the Europeans will head off a new existential crisis. After all, Europe isn’t just a continent of dithering bureaucrats and politicians, or of failed conquerors. It is also the continent of Bismarck, Descartes, Einstein–and Galileo. more> http://twurl.nl/clnww4
- Seven Currencies Since 1914 Is Enough for Germans Rescuing Euro, Leon Mangasarian, Bloomberg/BusinessWeek