The best hope for Europe Another summit – MoneyWeek

Theeurocrisisforceditswaybackintotheheadlinesthisweek。

Spainannouncedthatitsdeficitfor2011wouldbeatleast2%higherthanthetargeted6%ofGDPasitseconomyweakenedfurther。

Unemploymentrosetoalmost21。

5%oftheworkforce。

Greece,stilltryingtofinalisethedetailsofitssecondrescuepackageannouncedlastOctober,warnedthatunlessthepackageisagreedbyMarch,itwillrunoutofcashandbeforcedtodefaultandexittheeurozone。

Ariseinemergencyshort-termborrowingbybanksfromtheEuropeanCentralBankpointedtoanenduringcreditcrunchinthebankingsystem。

Whatthecommentatorssaid

“Thechallenges[fortheeurozone]remainenormous”,saidSimonNixoninTheWallStreetJournal。

Governmentshavehugerefinancingneedsthisyear。

ItalyandSpainwillbothhavetoraisedebtworthmorethan20%oftheirGDP。

Withtheeurozoneslippingintorecession,investorsarehardlylikelytobeconvincedthattheywillbeabletogrowtheirwayoutoftrouble。

Greece,wherethemainstickingpointappearstobethesizeofthevoluntarywrite-downbondholderswillhavetomake,isalso“arunningsore”,saidNixon。