Münchau: a breakup of the eurozone must now be considered as a probable scenario.

Once the crisis hit Italy, followed by an absolutely inadequate policy response of the Italian government, the crisis has reached a point of No return.

Italy is too big to save with the current set of instruments, including ECB bond purchases, and in the absence of a credible programme of eurobonds,

he concludes that a breakup of the eurozone must now be considered as a probable scenario.

The question is now whether and how the EU can survive such a cataclysmic event.

Wolfgang Münchau in his column in FT Deutschland, ref. by Eurointelligence 21 September 2011

 

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