Wednesday, 28 September 2011
A Greek default is inevitable and there is 35 percent chance of the euro-area economy slipping back into recession, Ernst & Young said.
“The euro zone sovereign-debt crisis shows no sign of abating,” E&Y said in an e-mailed report in London today. “A default on Greek government debt now seems unavoidable. The key question is when this default will occur and how it will be managed.”
http://www.bloomberg.com/news/2011-09-28/ernst-young-says-greek-default-inevitable-as-risk-of-recession-increases.html
Germany, Europe's largest economy and the single biggest contributor to the aid, sends more than 40 percent of its exports to euro-region countries and has the most to gain from an intact monetary union. Lobby groups, led by the BDI Federation of German Industries and labor unions under the umbrella of the Confederation of German Trade Unions, or DGB, made a last-ditch appeal to lawmakers this week to back the changes.
“The end of the currency union would cause immense, incalculable damage to Germany,” Hans-Peter Keitel, the BDI's president, said at a Sept. 27 conference in Berlin attended by Merkel and Greek Prime Minister George Papandreou.
“For this reason, it's short-sighted to talk only about the costs” of sovereign rescues, Keitel said. “One thing that's needed is political responsibility” and readiness to make sacrifices, he said.
Nick Clegg: EU will be torn apart if closer eurozone ties leaves Britain in the cold
http://www.guardian.co.uk/politics/2011/sep/28/nick-clegg-eu-will-be-torn-apart-eurozone?newsfeed=true
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