Financial Times editorial: Europe faces not a mere liquidity problem in a small, sun-kissed Mediterranean state, but a systemic crisis of its monetary union

It will help if Angela Merkel and Jean-Claude Trichet end their increasingly pointless squabble over private sector involvement in a Greek debt relief package.

But it will not transform Greece’s prospects for escaping from its debt trap, and it will not touch the heart of the matter – that Europe faces not a mere liquidity problem in a small, sun-kissed Mediterranean state, but a systemic crisis of its monetary union.

Financial Times editorial 18 July 2011