Europe: On the Brink?

PART 1: Two experts question the eurozone’s response to the debt crisis and wonder whether it’s possible to repair the damage

Ben Johnson 13 March, 2012 | 1:50PM

Click here to move on to Part 2 - The Competitiveness Problem.
Click here to move on to Part 3 - The Tough Road Ahead.

The characterisation of the unfolding saga in the eurozone in the financial press has gradually evolved from a liquidity crisis to a solvency crisis to what is now increasingly being viewed as a political crisis. Just over a decade after its formation, the European Monetary Union is facing questions about whether its very existence makes economic, fiscal, and political sense.

At this time, the ultimate fate of the euro is unclear. If anything is clear, it is that Europe faces months and years of difficult challenges as the 17 countries of the eurozone decide whether they have the wherewithal (and desire) to keep the euro intact. Furthermore, the eurozone does not exist in a vacuum, and the progression of events in Europe will inevitably affect markets worldwide.

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About Author

Ben Johnson

Ben Johnson  is director of passive funds research at Morningstar.

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