From NEWSMAX:
German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed with Prime Minister Mario Monti that Italy succumbing to the region’s debt crisis would lead to the end of the euro, Monti’s office said.
Sarkozy and Merkel “confirmed their support for Italy, saying that they are aware that the collapse of Italy would inevitably lead to the end of the euro,” Monti told ministers at a Cabinet meeting in Rome today, according to an e-mailed statement. That “would provoke a stalemate in the process of European integration with unpredictable consequences.”…
Merkel again ruled out joint euro-area borrowing and a bigger role for the ECB in fighting the region’s crisis. The chancellor told reporters in Strasbourg that euro bonds are “not needed and not appropriate” and would “level the difference” in euro-region interest rates…
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EDITOR: Though not necessarily representative of the balance of the article, the following observation appears: “The Italian government should purse an ‘ambitious’ timeframe on reforms and ‘adopt bold measures to re-launch growth,’ EU Economic and Monetary Affairs Commissioner Olli Rehn told lawmakers in Rome today.” Substituting the USA for Italy, readers of these pages will find the recommendation familiar.
Furthermore, we have long opined that the Euro region is not sustainable short of moving towards the equivalent of the United States of Europe.
