Euro crisis: “Europe will be lucky if it ends up in stagnation like Japan for the next ten years”

Back in Limbo Greece, stage 2 in the 4-stage attempt to form a government with a parliamentary majority ends without agreement – as the BBC notes Mr Tsipras said he had failed to reach agreement with mainstream parties because of his insistence on rejecting austerity measures demanded by the EU and IMF as part of a bailout deal. He made the announcement after talks with the Pasok and New Democracy parties, which support the bailout. Pasok leader Evangelos Venizelos is now …

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Robert Peston: “the Irish economy is hideously and perilously balanced between recovery and Armageddon”

As John has noted, the Irish government is teetering on the brink of a lost confidence vote.  And the Anglo-Irish Bank’s credit rating has just been significantly downgraded by credit agency Moody’s, just as the Irish Finance Minister prepares to reveal how much more that bank will cost the state tax-payers.  But a change in government won’t change the fundamentals.  And, everyone’s hero, Robert Peston spells out the scary reality All of which is to say that the banks and the Irish state …

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