Europe's Future: Shed States, Regroup or Decay?

THE PROBABILITY of a break-up of the euro has increased significantly in recent weeks as the centrifugal forces rending Europe’s monetary union have grown stronger. Economic, financial and political conditions are all deteriorating, and each is feeding off the other.

This has culminated in questions being posed among those who call the shots in Europe about shrinking the euro zone from its current 17 member countries. In Cannes two weeks ago, the French president publicly contemplated a country exiting the currency union. Last week, multiple official sources told Reuters news agency that plans for a smaller currency union of core northern European countries were being considered.