The future of the Eurozone is decidedly hanging in the balance at the moment. The problem isn’t a simple question of economics anymore: everything now is all about credibility, about who does what, and when, and how everyone else reacts.
As the crisis trundles on and on, news that Greek bond spreads have hit ever higher post European Monetary Union records has become such a regular event that the process now seems almost a monotonous one. However, what happened on what we could now call this week’s Greek “Black Thursday” certainly marked a new, and more worrying milestone in the ever evolving crisis. The news this morning that Greece has demanded the activation of the EU-IMF loan - news which apparently took even the EU Commission itself by surprise it seems - only adds to the general sense of confusion that abounds.
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