Maybe now we will all understand why the ancient adage “May you live in interesting times” was intended not as a blessing but as a curse. Last week was more than interesting in Europe: It was of historical importance—and bone-rattling in consequence. A crisis that seemed messy but contained in Greece suddenly spread to Italy—which has an economy six times the size of Greece’s. And it is perfectly plausible that Spain will be next to enter the sick bay.
Almost overnight, talk of contagion has spread. Every European nation in danger of contracting a case of fiscal crisis has now got one. We can’t talk any longer of an ailing periphery and a solid core among EU members: Lenders in the stronger countries are too exposed to the sick men of the Continent for such distinctions to be of any use.
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