By Noah Barkin – The euro zone crisis seemed to vanish from the headlines for a brief moment as 2011 ticked over into 2012, but it is about to return with a vengeance.
After years of frustration with the French president‘s shoot-from-the-hip style, government officials in Berlin say they are now worried about the end of “Merkozy,” the most important relationship in Europe, in the middle of the crisis.
“In the current market environment there is no room for using a Keynesian-type expansionary fiscal policy to boost demand in countries with low growth – the markets will simply not accept such a strategy,” Deutsche Bank said in a confidential note on the crisis prepared for the German government late last year. more> http://tinyurl.com/6rj64kz
- Merkel, Sarkozy present united front on euro (marketwatch.com)
- New Year, new push to save the euro, Matt Zuvela, Joanna Impey, AFP/AP/dpa/Reuters/Deutsche Welle
- Euro Falls Ahead of Merkel-Sarkozy Meeting in Berlin, SPIEGEL ONLINE
- Merkel Meets Sarkozy to Draft EU Fiscal Rules as Part of Euro-Rescue Plan, Patrick Donahue, Bloomberg
- The Eurozone in Crisis, Council on Foreign Relations
- Euro-Zone Sentiment Darkens as Recession Fear Looms (europebiz.wordpress.com)
- Heat back on eurozone (business.financialpost.com)