Will The EU Summit Crush The Euro?
By Kathy Lien:
In less than 24 hours, European Leaders will be gathering in Brussels to decide the future of the euro. By now, everyone knows that the Germans staunchly oppose any type of liability sharing and the chance of changing their minds over the next 2 days is practically zero. This week German Chancellor Merkel took every opportunity to reject the notion of Eurobonds or any type of liability sharing including joint deposit insurance. Not only did she make her stance abundantly clear but to remove further ambiguity Merkel went on to say that she doesn't see it happening in her lifetime. In light of this very public opposition to sharing sovereign credit risk, it would be safe to assume that most investors expect the EU Summit to be a big disappointment. In fact very few EU Summits have resulted in major announcements because these meetings are driven more by politics thanComplete Story »