EconomicsEurope: EuroZone: Will the Zone and Currency collapse of its own weit?

Financial Times email newsletter (June13,2k11)

-- FT material posted here by EconoMix.

Breaking News  The eurozone heads for break up The muddle-through approach to the eurozone crisis has failed to resolve the fundamental problems of economic and competitiveness divergence within the union. If this continues the euro will move towards disorderly debt workouts, and eventually a break-up of the monetary union itself, as some of the weaker members crash out. The Economic and Monetary Union never fully satisfied the conditions for an optimal currency area. Instead its leaders hoped that their lack of monetary, fiscal and exchange rate policies would in turn see an acceleration of structural reforms. These, it was hoped, would see productivity and growth rates converge. http://link.ft.com/r/9ULF66/DW5QE9/IXWCB/26T6TP/5C6JXU/B7/h?a1=2011&a2=6&a3=13

EconomicsGreece: EU: 'Financial Times' says "prepare for worst"

Financial Times 
Exclusive Comment email newsletter (June16,2k11)

Breaking News

-- FT materials posted by EconoMix

Greece and Europe must prepare for the worst

Greek Prime Minister George Papandreou is out of ammunition. The embattled leader has been gradually losing control of his socialist party for some time, but the trend has sharply accelerated this week, as larger and angrier crowds take to the streets. He now plans to form a new government, but hopes that he can win passage in coming weeks for a new fiscal plan — needed to ensure the next European Union / International Monetary Fund loan tranche, and any future bailout package — are all but dashed. European leaders need to think about what to do next, and quickly. http://link.ft.com/r/9ULF66/XHLWQG/6O6PS/5CG5ZJ/JIKM3Z/E4/h?a1=2011&a2=6&a3=16 From WORLD 8:41pm Greek deal fails  to ease contagion fears Spanish borrowing costs hit 11-year highs Editorial Evaporating reform of Greece Insight Policymakers can’t kick the can Video Political crisis weighs on Greece June 17,2k11

The A-List: Greek crisis threatens European decade of economic implosion

From day one, immense challenges faced the coalition of international institutions that opted for a liquidity approach to address Greece’s debt solvency problems. Now that this coalition is stumbling and bickering publicly, the outlook for Greece has taken a significant turn for the worse. Even as Greek Prime Minister George Papandreou prepares to reshuffle his cabinet, he must know his nation’s predicament is now extremely hard to reverse. http://link.ft.com/r/S4XZQQ/YBTIT9/2BHRI/V1F0TJ/7208HE/FW/h?a1=2011&a2=6&a3=17