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Eurozone: Shaken and Stirred

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With business analysts busy trying to figure out what impact the Greek fiasco will have on the rest of the Eurozone, the UK, despite a terrible budget deficit (worse than Greece) and a new governmental election that can only be described as a mess, France has now weighed in with typical separatist zeal. And perhaps the tiny firebrand, Nicolas Sarkozy, has some salient points about the sixteen member Euro coalition, and just needed to scream and shout in order to wake Angela Merkel.

According to UK broadsheet, The Guardian, a recent meeting between the financial boss of Europe (Germany) and France turned into a proper, heated row between Merkel and Sarkozy. Oh, to be a fly on the wall for that. “If at a time like this, with all that is happening, Europe is not capable of a united response, then the euro makes no sense,” said Sarkozy, and what he’s triggered is a fear that France, although perhaps bluffing, might pull out of the Euro. The Guardian reports that after a fit of histrionics, which included Sarkozy “banging his fist on the table and threatening to leave the euro,” certain key decisions were made.

It seems the fireworks paid off. There is now a pulled-together package backed by the IMF, a safety net of over £600bn for the single currency and an improved system of loans. Most of this may have been pushed through by Sarkozy, but it was prompted by the US Vice President Joe Biden and President Obama, who made it clear that Washington wanted to see urgent action concerning the possible domino effect and fall-out from Greece, and not just more round table indecision.

The result of this decisive new ‘package’ resulted an initially buoyant Euro, only to find it falling dramatically several days later. It appears even this consensus is not a cure-all for Europe’s ailments, only a brief respite from Athens.

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William R. Feins , freelance journalist from London, UK; he received his B.A. degree in Economics and his Masters in Sociology. William has always been interested in the mechanics of business and the inspiration of original thinkers, and firmly believes that the former can’t succeed without the latter. In his spare time, he enjoys the ridiculous spectacle of watching table tennis on a big screen (preferably at a pub) and reading weighty tomes about World War II.

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