the Eurozone

First would be a renewed assault on the eurozone. That would force money out of the euro and into the dollar.

Keep Greece afloat for a couple of years and the rest of the eurozone will be robust enough to withstand the shock of a default.

They argue that the best solution would be for Greece to leave the eurozone and rejoin later.

Greece's spiralling public debts, which erupted into a full-blown crisis in May, called into question the long term future of the eurozone.

The Eurozone authorities seem to have finally got the hang of an effective communications strategy, and this has paid off.

For all that, however, any more than notional support for the eurozone would come with significant political risks.

This fear is at least partly behind the recent rise in yields across the eurozone.

If, however, they want the eurozone to work as it is, at least three changes are inescapable.

A government about to default would be mad to leave the eurozone.

The country needs to grow by 2-3 per cent a year in the long run to be able to remain in the eurozone.

This may be desirable but the bad news is that it seems to have been fuelled by fears for the eurozone's future.

He said the markets were looking for "permanent solution" to the eurozone rather than just purchases of bonds.

Athens will run out of cash in early October if the next tranche of the eurozone-International Monetary Fund rescue loan is not disbursed.

If that situation had been allowed to persist, it would have produced serious difficulties for the eurozone further down the road.

They seem to be well anchored in the US and the eurozone, but far less so in the UK, where the Bank of England has to be cautious.

Sarkozy said the most important element was the plan "to create a real economic government for the eurozone" .

This works right up to the point where government debt itself hits crisis, as it already has in the eurozone's weaker countries.

Ms Rousseff said the problem was that at present there was no international rescue plan for the eurozone on the table.

When all the member countries try to be like Germany they are bound to send the eurozone into a deflationary spiral.

In trying to keep its monetary virginity intact, the bank threatens to destroy the eurozone.

Mervyn King, governor of the Bank of England, said the eurozone "appears to have stalled" .

Over the long term, Mr Rutte said, the eurozone should force countries to leave the euro if they did not abide by the commissioner's ruling.

But there was one reason to cheer: signs of a shift in the eurozone's political winds.

The eurozone has had two years to create a sanitary cordon around Greece's public finances and has so far failed to do so convincingly.

The French president said the measure amounted to the creation of an "economic government for the eurozone" .

Terrified by the consequences of the euro's failure, they have urged fiscal union on the eurozone as a means of shoring up the currency.

Any marked pick-up in German spending would obviously be welcome news for the rest of the Eurozone.

The Franco-German proposal to transform the EU or at least the eurozone into a fiscal union is such a project.

However, the bank failed completely to spot how the seeds of turbulence were being sown by developments within the eurozone itself.

The Eurozone is far from shattered, yet there does seem to be some hairline cracks.

More to the point, China's creditworthiness is improving while that of the eurozone collectively is deteriorating.

And Greece is only a symptom of a wider problem: Does the eurozone make sense as a currency union?

It was the responsibility of the eurozone to show that there was an effective firewall.

Thus, the question of imbalances within the eurozone is inescapable, however much Germany may wish to resist such a discussion.

The eurozone as a whole did not suffer huge asset bubbles and consequent financial crises: these were limited to a few peripheral members.

Finally, the eurozone is moving towards fiscal tightening, with the offset, at least for the moment, of a weaker exchange rate.

Traders had also been betting that the rest of the eurozone lacked the political will to help its southern neighbours through the crisis.

In the case of the eurozone periphery, it is hard to claim that this will come to the rescue.

I wonder how the eurozone would explain such a policy to its global partners.

At the heart of it, there is a feeling that Germany is hoisting the problems of the Eurozone onto its weakest members.

Yet this particular episode has at least two specific lessons for the eurozone, as well.

Exiting the eurozone was "not in the [European Union] treaty, " he said, reflecting ECB alarm about the signal sent to investors.

True, if creditworthy members were to transfer resources to the uncreditworthy on a large enough scale, the eurozone might be kept together.

A dissolution of the eurozone would leave German exporters confronted with a far more expensive currency and a less competitive position.

Russia is setting aside up to $40bn for this year and next to shore up the economy in case the eurozone crisis should escalate and spread.

The only long-term solution to the Eurozone's economic problem is to resume growth. Short-term rescue is not to resume growth.

The bottom line of the Irish crisis is to emphasise the interdependence that exists in Europe and not just the eurozone.

In fact Greece cannot leave the eurozone voluntarily, without having to leave the EU as well.

As inflation exceeds its own definition of price stability, a strong euro is in the interests of the eurozone.

Mr Trichet said the eurozone's resilience had been underestimated.

It is time to stop pretending that we are about to see a "grand bargain" for the eurozone in March.

Even crises out of our control, like problems in the Eurozone, could trigger a "lost decade" of economic stagnation in the U. S.

But Standard & Poor's decided to put the eurozone on negative watch. Fragility remains the watchword.

More than a year after the eurozone first announced support for Greece, the eventual fate of the currency remains uncertain.

And this brings us back to the eurozone's original sin -- the lies, the fudges, and the loopholes at the moment of its creation.

Tusk indicated in press conference, at present, it is not the best time for Poland to set a schedule for the entering into the Eurozone.

If Greece storms out of the eurozone there might be little fear other countries would follow suit.

It's true that cleaning up the banking sector will be costly and unpopular, but it need not be crippling for the eurozone as a whole.

The ECB would be ill advised to go that far without a political agreement on how the eurozone should work.

For the eurozone as a whole, such a depreciation would not have a large direct impact, since most trade is within the area.

If present policy prevailed, the eurozone would be in danger of falling into a depression.

Given the state of the eurozone, it is no longer possible to deny a fifth problem: the insufficiency of the Maastricht Treaty.

Should it fail, it may wake up to find it has lost the eurozone, in a fit of absence of mind.

But analysts warned the move did not address the fundamental issues behind the eurozone's sovereign debt crisis.

A decline of the euro cannot be a permanent solution to differences in productivity trends within the eurozone.

It would delay a break-up of the eurozone, but would make it more probable in the long run.

At best, the eurozone has bought a bit of time for adjustment.

The eurozone is now subject to a run by global investors, and a quiet bank run among its citizens.

She had planned to separate the discussion about the crisis from that of the future architecture of the eurozone.

Jean-Claude Trichet, the ECB president, denied that the eurozone's 16 governments had bounced the bank into the bond purchase programme.

To secure the fresh funds promised by the eurozone last week, the Greek government has had to commit to years of strict austerity.

They will want to ensure that the eurozone is not going to turn into a permanent transfer union.

More precisely, what Germany wants to see is a sharp cutback in fiscal deficits throughout the eurozone.

It was the bubbles, stupid: in retrospect, the creation of the eurozone allowed a once-in-a-generation party.

China has bought bonds issued by the European Financial Stability Fund but has not agreed to wider intervention to help the eurozone.

The latest contribution comes from the London-based Centre for European Reform in the form of a pamphlet entitled: Will the Eurozone Crack?

The dollar was, however, the biggest gainer; as the eurozone's woes increased, funds around the world flooded back to the haven of the US.

At least, nobody now sees the eurozone crisis as a little local difficulty.

A prolonged and volatile slowdown in global economic activity from the eurozone crisis, coupled with a sluggish US recovery, is now likely.

So, investors want little to do with companies tied to the eurozone, as the debt crisis increases the chances of a renewed recession there.

The German public does not understand why it should be blamed for the troubles of the eurozone.

Just like the eurozone, the global economy suffers from internal imbalances and an inability to take collective action.

No one, after all, could say that sinners have been encouraged to future bad behaviour if the eurozone no longer has any future.

The integrity of the eurozone has been considered sacrosanct by its core members throughout the long running European sovereign debt crisis.

An alternative solution might be to help the world absorb larger export surpluses from the eurozone, the US, Japan and the UK.

Conventional wisdom holds that the eurozone problem is the adoption of a common monetary policy without a common fiscal policy.

But the figure suggests that the eurozone's periphery is suffering the kind of misery that might yet create political instability.

That, in turn, means the financial crisis will go on and on and on, at least in the eurozone.

The eurozone will not come out of recession for at least six months, according to BDO estimates.

Analyst Tilford says whether Britain and others will be weaker for opting out of the fiscal pact depends on what happens to the eurozone.

Two years of crisis in the eurozone came down to this Brussels summit.

As part of a credible adjustment, Europe needs an infusion of financial support from beyond the eurozone, channelled through the IMF.

My premise was that the eurozone will eventually agree another Greek loan this summer.

For it to be a positive contribution to the eurozone debt crisis, it should meet three tests.

Tim Geithner, US Treasury secretary, tried to calm nerves on Wednesday, saying the eurozone authorities would not risk a banking crisis.

On paper, the eurozone does not look exactly like a CDO, since eurozone governments have never tried to "bundle" their debt.

Including two other loans already made toGreece, the eurozone said the firewall is now above 800bn euros.

Mr Nag said the eurozone crisis threatened "significant knock-on effects" across Asia.

The second option would be to limit the eurozone to countries so similar to one another that large divergences are unlikely.

We are criticized by the rest of the Eurozone, but we are the only member-state that hasn't violated the "no bailout" clause.

It would fly in the face of Brussels etiquette for a subset of the eurozone to go it alone.

Periphery demands for German goods are down and if the eurozone splinters the new "deutschmark" could have quite a high value.

The cost of the Greek bail-out is not high, compared with the hypothetical alternative of uncontrolled Greek default inside the eurozone.

A disruption of the eurozone would be very bad for German manufacturing.

As the eurozone solves its crisis, a microeconomic community is turning into a macroeconomic union.

The People's Republic isn't struggling for breath, like the U. S. , let alone confronting its economic mortality, like the eurozone.

Nonetheless, Mr Lennon added that prices were likely to be driven by concerns over the eurozone debt crisis in the short term.

Potentially solvent countries would be financed and the eurozone would grow its way out of the crisis.

But it cannot hope to make up for the reluctance of the eurozone's leading players to provide the support needed.

Whether the krona will continue to display haven characteristics if the eurozone crisis deteriorates further has yet to be tested.

The eurozone crisis has worsened, with contagion spreading through Italy and Spain and lapping at the door of France.

On top of that, there is the uncertainty surrounding the eurozone crisis and global growth that could overshadow everything.

With the markets in turmoil and the eurozone in danger of collapse, this can only be a time for short-termism.

The crisis in the eurozone is rapidly evolving into a test of strength between European governments and global financial markets.

It was not what the markets wanted to hear. They wanted an instant solution to stem the eurozone crisis.

So Downing Street will be no more than a spectator as the eurozone launches itself, in the context of crisis, into a new era.

Unfortunately the budgetary problems that have paralysed both the eurozone and US do not help the case.

Equally, says Philip Klapwijk of GFMS, the rally could be extended if the eurozone sovereign debt crisis were to spread.

Just as the eurozone is a microcosm of the global economy, the dysfunctional G20 is a macrocosm of the European Council.

France and Germany also called for constitutional amendments across the eurozone that would require governments to balance their budgets.

Olli Rehn, the EU's top economic official, said it was a "responsible step for securing the financial stability of the eurozone" .

To be clear, I am not saying that Italy should exit the eurozone. I am saying that Italy should prepare for that eventuality.

"We view Greece as a unique situation in the eurozone" , he said.

But the EU authorities would have only themselves to blame, since their policies are in effect driving Greece out of the eurozone.

Indices of activity by purchasing managers, and other forward-looking indicators, suggest the eurozone may be back in recession already.

Germany has made clear that if the eurozone is to continue, it will be on the German work ethic not the Greek one.

Third, governments in and out of the eurozone must prevent a banking meltdown.

Yet the alternative, by allowing the crisis to infect the eurozone as a whole and threaten the euro, would be riskier still.

That compares to the eurozone average of 91% and is half that of Greece at 140% and much stronger than Italy at 120%.

Speculators are increasingly betting that the eurozone crisis could escalate as short positions against the euro rose to a fresh record.

When the eurozone was created, a huge literature emerged on whether it was an optimal currency union.

America's relative public restraint on the eurozone, however, should not be mistaken for a lack of activity.

One of the weirder experiences for anyone who lives in the eurozone is a visit to a German supermarket.

On Thursday the European Central Bank set out to diagnose and cure the problems of the eurozone; but it gave too small a dose.

At a time when the eurozone's future hangs in the balance, an early election may not be in Italy's best interests.

As it reminds readers, the eurozone is the product of a process of European integration that began in the aftermath of the second world war.

Jean-Claude Trichet, the head of the ECB, is effectively gambling with the eurozone's future by taking on this huge commitment.

"Nobody wants the eurozone to remain unstable and turbulent, " he said.

The muddle-through approach to the eurozone crisis has failed to resolve the fundamental problems of divergence within the union.

Let me make clear what I am saying and what I am not saying on the role of Germany in the eurozone and the eurozone in the world.

The break up of the eurozone would be a crisis of apocalyptic proportions, going beyond our financial system.

The financial system remains the single biggest threat to the long-term stability of the eurozone economy.

Without entry into the eurozone, this might have petered out.

If it allows slow growth, let alone an outright recession, to grip the eurozone, the chances for big peripheral members are grim.

Analysts said the eurozone debt crisis coupled with a slowdown in China may hurt Japan's exports going forward.

The report also warns of a grim future in the aftermath of a potential European recession if the Eurozone debt crisis is not resolved.

The latter, moreover, was an inherent element in the workings of the eurozone itself.

Nothing can be settled in the eurozone without the approval of the German chancellor.

Even now, the eurozone still squabbles over the small print of a package that is essentially irrelevant to its future.

Everyone is back form the beach and they are finally focusing on the deterioration that has continued to fester within the Eurozone.

Obviously, this would require the long overdue abandonment of the eurozone's defunct entry criteria.

While some of these countries have a fiscal problem, the eurozone as a whole does not.

A hands-off approach to the eurozone in crisis could lead to accusations of a lack of solidarity with a major trading partner.

In exchange for a guarantee, the eurozone's major banks would have to agree to abide by the ECB's instructions.

There was also some support from words of support for the eurozone from China, although analysts were generally sceptical.

Across the Atlantic the eurozone periphery is now contracting, or barely growing at best.

Further bail-outs of Greece and Portugal in the form of loans from the rest of the eurozone are unlikely.

Will what the eurozone is able to agree to do be enough to keep it together?

For the first 10 years of the eurozone, investors considered the risks trivial and sought no insurance whatsoever.

Moreover, forcing the eurozone to pursue its own treaty has put his own goal of repatriating powers beyond reach.

Once the possibility of a country doing so is officially recognised, exchange rate risk is suddenly again a feature of the eurozone.

Those persistent imbalances, much more than the build-up of debt, are my deep cause of concern about the long-term health of the eurozone.

However given the current financial problems in the Eurozone, Mittenwalde may have to wait a little longer to finally receive its payback.

These acts "show our confidence in the economies of Europe and the eurozone, " he said.

Five years ago, I was among those who argued that the probability of a collapse of the eurozone was close to zero.

On the contrary, I expect the eurozone to be exceptionally stable in the long run.

The establishment of an economic government for the eurozone will be regarded by eurosceptics as a political power grab for Europe.

In the eurozone, the well flagged risk of sovereign debt hasn't gone away, he said, even if markets are feeling better.

In the next decade, a federal eurozone will change Europe's mosaic Within the eurozone it will become more prescriptive.

These challenges are particularly acute when parts of the globe are in trouble, as the eurozone now is.

Now that France has lost its AAA credit-rating, Germany is left as the only large AAA-rated country in the eurozone.

Either the eurozone will deepen into a fiscal union, or the weak members will be forced to break off.

Given the big adjustments ahead, it is no longer evident that the eurozone will manage these tensions.

The eurozone crisis should not signal the end of the euro but rather the start of a long-overdue overhaul.

Therefore, if the eurozone periphery is to be saved, investors need to believe in the ECB and its leadership.

If the country goes down, the eurozone will bail it out.

The answer appears to be that investors are taking flight, not just from Germany, but the eurozone as a whole.

Alternatively, politicians may pull their countries out of the eurozone regardless of short-run costs.

They said they'd propose more political integration with the creation of a common economic government for the eurozone.

Paris is firmly opposed to any suggestion of automatic sanctions to discipline spending in the eurozone.

The rescue system would be introduced alongside proposals to rewrite EU treaties with far tougher budget rules for the eurozone.

If the eurozone had moved to a fiscal union some years ago, its finance minister would now be in a position to take action.

Most policymakers, including those in the eurozone and the US, do not believe broad public intervention is yet necessary.

The two leaders worked closely together during the Nato campaign against Libya, but relations have been strained in the eurozone crisis.

As the German export sector returns to full capacity, one would expect wage costs to rise by more than the eurozone average.

We need to see that same resolve in the eurozone.

Ministers are attempting to shore up a fragile world recovery against the threat posed by the eurozone debt crisis.

Dealing with Greece's debt and lack of competitiveness is crucial for containing the risks of contagion to the rest of the eurozone.

So, I ask, will the argument of the column be that "it's all over" for the eurozone?

The eurozone could easily fall into a self-reinforcing cycle of bank and government debt default.

It would have been the right thing to do: restarting growth is a sine qua non for ending the eurozone's crisis.

Now it has been suggested that central European members of the European Union not in the eurozone should unilaterally adopt the euro too.

Tilford says investors are beginning to lose confidence in the eurozone, and so interest rates are rising in every country but Germany.

The vote was triggered by eurosceptics who wanted the party to take a tougher line in opposing bail-outs for members of the eurozone.

In the eurozone and the UK, the private sector expects a year of profit and jobs growth.

As is so typical in the eurozone, each country behaves like a small open economy at the edge of the world.

Even if the US slows significantly, large economies such as the eurozone and Japan could catch up in productivity.

It is only this year that financial markets started to worry about the accumulation of sovereign debt within the eurozone.

It has comfortably outperformed the rest of the eurozone in price, yield and total returns.

I cannot see how the eurozone could follow suit without breaking up.

Confidence in Italy's public finances is critical to preventing the spread of the Greek debt crisis across the eurozone.

If those relative improvements in productivity do not happen, there may be no choice but to end the eurozone as we know it today.

Furthermore, he points out, Germany is the best performing economy in the Eurozone, where the remaining countries are facing disaster.

Given this wishful thinking, the eurozone was always vulnerable to a financial crisis.

Second, Germany was able to offset extreme domestic demand weakness with robust external demand, from both inside and outside the eurozone.

This would necessitate a large interest rate increase in the US and further interest rate increases in the eurozone as well.

I find it more constructive to ask what the eurozone will need to do to survive the strains ahead.

From Paris yesterday, the hints were that the eurozone countries will also adopt the British model.

Throughout the eurozone crisis, the EU has insisted that Greece carry out the impossible to stave off the inevitable.

Views vary across the eurozone over how great is the threat to economic growth posed by the euro's most recent appreciation.

Large as the numbers seem, the debts of the peripheral countries are a small fraction of the eurozone's output.

And in case there is any doubt, he adds: "Britain's national interest would not be served by the break-up of the eurozone. "

These days, however, that phrase needs a subtle update, at least in the eurozone.

The bizarre thing here is that the Eurozone as a whole has no need of Chinese, Russian or anyone else's money.

Meanwhile, France and Germany led the eurozone to its strongest manufacturing output in almost four years.

Remember that the big additions to money supply came in the United States, the eurozone and the United Kingdom.

Germany, the main surplus country, has inevitably become the largest creditor of the eurozone's heavily indebted peripheral nations.

This theory can also be used to explain the low growth in the eurozone countries since the middle of the 1990s.

"China cannot be expected to bail out the eurozone unless it opens hurdles to China and other high growth markets, " Jin said.

It would be a fundamental break to the unity of the eurozone.

Even more immediately, there has to be a concern that the eurozone's crisis will encourage some yield-seekers to head east.

Yet the economic issues facing the US and the eurozone dwarf anything the Bank can do.

That sums up the eurozone's response to its sovereign debt crisis.

Maybe not, but every European is now paying the price for admitting a nation economically unfit to compete in the eurozone.

Strauss-Kahn said on Wednesday that confidence in the eurozone as a whole was on the line following the crisis.

Finally, the eurozone as a whole does not display any degree of external imbalance.

and, second, adjustment in the eurozone is not going to work without offsetting adjustments in core countries.

That would be desirable; it would mean that the eurozone had bought itself time to deleverage.

Stock markets across the world have risen sharply as hopes increase about a new plan to deal with the eurozone debt crisis.

The eurozone private surplus will be 6. 7 per cent of GDP and that of the OECD as a whole 7. 4 per cent.

Worse still, very few investors (or even regulators) really understand the complex web of interconnections between the eurozone banks.

The eurozone has headed down many blind alleys in its search for a solution to the sovereign debt crisis.

Second, what are the chances that the eurozone would act unanimously in support of an IMF programme?

The uncertain future of the eurozone and the increase in public debt in Europe are also fuelling political and market tension.

The eurozone was supposed to be an updated version of the classical gold standard.

Outsiders should not underestimate the domestic obstacles to winning popular support for assistance to the eurozone periphery.

As a result Germany objectively determines the financial and macroeconomic policies of the eurozone without being subjectively aware of it.

There is the immediate crisis of insolvency among the eurozone's weaker members. complicated by a continuing banking crisis.

One reason for this shift in sentiment is down to the tone of debate regarding the Eurozone nations that have received bailouts already.

Turkey, unlike some of the eurozone's heavily indebted economies, has weathered the financial crisis relatively well.

This reflects the fact that the eurozone's banks enjoyed a softer landing than their US and UK counterparts after the global crisis.

An editorial in the official People's Daily over the weekend urged that the eurozone area should guarantee any investments China makes.

The pessimists would argue that global demand growth will not be sufficiently strong to support a self-sustained recovery in the eurozone.

If the plan was voted down by the country's citizens, foreboding bankruptcy of Greece, it would deal an unfathomable blow to the eurozone.

Questions remain about whether the sovereign debt crises in the eurozone have been resolved or merely deferred.

However, forcing the eurozone to set up its own parallel union will not protect the City.

But the brokerage's collapse could have serious consequences for the eurozone, potentially undermining its latest survival plan.

If this seemingly inexorable process is to be reversed, both Greece and the eurozone must urgently adopt a plan B.

In the meantime, a domestic credit crunch and the prolonged global economic slowdown are about to throw the eurozone back into recession.

In the eurozone, the recovery that started early this year was primarily the result of strong export growth.