Given the measures the ECB has taken to provide banks with liquidity, it is hard to imagine that banks would not be in a position to provide sufficient loans to business.
Germany, Europe's biggest economy, is a key player in the long-running battle to stem the eurozone debt crisis. It has backed the strategy of getting governments to embark on often-savage austerity measures to reduce deficits.
Greece is mired in recession and sinking under the weight of unsustainable debts. Italy and Spain are threatened by contagion, as was evident in the disappointing auction of Italian government debt last week and the further austerity measures announced by the Spanish government.
The position of Greece within the Eurozone looks untenable, and if it goes, the game changes significantly. It is perfectly possible for the Eurozone to limp along in a neither dead nor alive fashion for longer than one might think.
I think we will be far enough along in the next 12 months that we will have banished the dangers of contagion and stabilized the eurozone.
In the case of the Eurozone, many economists do foresee an eventual collapse – but when?
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2012 will be the beginning of the end for the eurozone
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